I was issued 735 "rights" as the result of the 2012 rights offering. I exercised 600 of those rights to buy 200 new UTG shares at a discount and allowed the remaining 135 rights to expire worthless. As far as I can determine, there are no tax consequence as a result of these transactions. I.e., the cost basis of the rights is considered zero so there is no capital loss due to the worthless expiration and there should be no cost basis adjustment to either any old or new UTG shares. I read through the UTG rights offering prospectus and couldn't find anyplace where the tax consequences of the rights offering were addressed; but, what I described for handling these rights seems to be consistent with the tax handling suggested by other closed end fund rights offerings. Just wondering if I got it right??