When you contribute securities (like stock) to the Pod, they may already have a built-in gain meaning they’re worth more now than what you paid for them.
If the Pod later sells those securities, that built-in gain doesn’t just disappear. It’s allocated back to you, since you were the one who brought those gains into the Pod.
Craft follows IRS rules (specifically Section 704(c)) to make sure the gain is properly tracked and assigned to you and not spread across other members. The manager will use one of the approved IRS methods (like the traditional method or another allowed approach) to handle the accounting and stay compliant with Treasury rules.
Please read our full disclosures before making an investment decision.