The prospectus for your fund says:

"Your Class B shares convert automatically into Class A shares
approximately eight years after purchase. Any Class B shares received
through reinvestment of dividends paid on converting shares will also
convert at that time. Class A shares are subject to lower annual
expenses than Class B shares. The conversion of Class B to Class A
shares is not a taxable event for Federal income tax purposes."

Keep a copy of the prospectus for use if the IRS ever chalenges the
conversion.

John's comment on the split is probably valid, but I didn't like the
other alternatives I tried. I have a Excel file I made through an
export of the old shares if anything ever causes it to go crazy, I have
a second source.

Hi, Charlie.


That's good to know. ;<)

Do you have an authoritative cite for the taxability/non-taxability of such
conversions/exchanges of Class B/Class A shares? Or are the "legal
opinions" and bald statements in prospectuses the strongest platforms
available for shareholders to stand on?

I mentioned Sec. 1031 in an earlier post, but I also pointed out that Sec.
1031 specifically excludes exchanges of marketable securities. Perhaps a
Subchapter C (Corporations) section applies to these conversions (like Sec.
355 for spin-offs)? Or something in the Regulated Investment Company
sections? As I said, I spent an hour or two yesterday plowing through
references online, but the Internet resources have sprung up since I retired
and I'm not very good at exploring them. And my subscriptions to Kleinrock
and Matthew Bender CD-ROM services expired over 10 years ago; I don't even
know what they have available these days.

It would be good if we could find an authoritative pronouncement on which
readers here could rely.

RC
--
R. C. White, CPA
(Retired - no longer licensed to practice)
San Marcos, TX
rc@corridor.net

"Charlie K" <Chas_K@excite.com> wrote in message
news:1104267936.240838.144360@f14g2000cwb.googlegr oups.com...

Thanks to all who responded to my posts. I am going to process the
conversion in Q2004 as a security name change to class A and remove 36.764
shares from the class A using the conversion price to value the Class A
fund.

Again, thanks to all.

Phil


"R. C. White" <rc@corridor.net> wrote in message
news:41d2c03e$1_4@127.0.0.1...

Steve Dell wrote:


Looking at it as a sale & purchase would make it a wash sale, with no
gain or loss involved.

Sparky wrote:


"Wash Sale"

Wash Sale Rule

If you sell shares at a loss and purchase shares in the same fund within
30 days before or after the sale, the IRS considers the purchase to have
"washed" all or a portion of your loss. The IRS designed this rule to
discourage investors from selling securities solely for the purpose of
generating a tax loss.

In the case of a wash sale, two important adjustments must be made. All
or a portion of the loss must be deferred and added back to the basis,
and the holding period of the purchased shares must be changed to
account for the deferral. Note that your cost basis statement already
reflects the adjusted cost basis and allowable loss. You need not make
any further adjustments.

The tax and legal information provided is a summary of our understanding
and interpretation of the current income tax regulations and is not
exhaustive. Investors should consult their tax advisor or legal counsel
for advice and information concerning their particular situation.
Neither Strong Investments nor any of its representatives may give legal
or tax advice.

Strong 1-800-359-3379
©2005 Strong Financial Corporation • All rights reserved. Important
legal information • Prospectuses • Wells Fargo Funds Management, LLC is
a registered investment advisor. Securities distributed and/or offered
through Strong Investments, Inc.

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