tbul@trsvax.UUCP (08/31/84)
#N:trsvax:52900022:000:1475 trsvax!tbul Aug 31 12:33:00 1984 TAXES ----- When a taxpayer is in the 30% tax bracket or higher, tax free investments become advantageous. O Short sales are never considered as long term capital gains regardless of how long you short the position. O Should you buy a bond that sells above its face value, you cannot deduct your purchase price from its face value and declare the remainder as a tax loss. The IRS believes that the dividends paid negates the loss. In other words, if you buy a $1,000 bond for $1,040 and sell it for $1,000, you cannot take a $40 loss. O Should you sell a stock at a loss for tax purposes, you must wait 31 days before you buy it back or else the IRS will consider it a wash sale and will disallow the tax benefits. O Watch for stocks that decline in November and December. The decline may be due to people selling stocks for tax purposes and good bargins may occur. O Sell the stock that you have a loss in now for a short term loss and put off selling your long term gains until the following year. This way of separating your losses in one year and your gains in another will take full advantage of the tax laws. Your short term losses will be fully applied and your gains will not be 'reduced' by the short term losses (if you mixed them) and will correspondingly make better use of the capital gains tax law. O Do not let taxes influence your investment judgement. If a stock should be sold because it represents poor value, then sell it.