SWFT, LLP 5191 Natorp Boulevard Mason, OH 45040

March 17, 2022

Ms. Faith Godwin 200 Catamon Drive Great Falls, MT 59406

Dear Ms. Godwin:

The purpose of this letter is to discuss the rules for purchases of stock by a securities dealer such as yourself. Your coworkers are

incorrectcorrect

that a securities dealer may not have a long-term capital gain from the sale of stock. The tax law

allowsdoes not allow

you to designate stock you purchase as being held for investment. You must make this designation by the end of the business day on which the stock is

acquiredsold

. I suggest you check with your supervisor on how this designation is normally done at your firm. I am sure it is a relatively simple procedure.

As long as you continue to hold the designated shares for investment until you

sellbuy

them, the shares are a

capital assetfixed asset

. When you sell them at $40 per share, your $fill in the blank fdd297009f8405c_6 per-share gain will be taxed as a long-term capital gain (if you have held the shares for more than one year).

Thank you for the opportunity to be of service. Please telephone me if you have additional questions.

Sincerely,