LOS ANGELES--(BUSINESS WIRE)--The Board of Directors of Source Capital, Inc. (NYSE:SOR), today declared a special year-end distribution of 14 cents a common share, payable January 15, 2013, to shareholders of record as of the close of business on December 31, 2012. This special distribution will be reflected in the Form 1099 shareholders receive in early 2013.
The Internal Revenue Code requires a regulated investment company to distribute substantially all of its net investment income and net realized capital gains to shareholders of record on or before December 31 in order to avoid the imposition of a federal excise tax. Many of the companies in the Company’s portfolio are paying disproportionately large dividends this year due to higher tax rates next year. Because the Company received these large dividends, a special year-end distribution from ordinary income is being declared to conform to the provisions of the Code and avoid paying the federal excise tax.
Source Capital, Inc. is a closed-end investment company managed by First Pacific Advisors, LLC.