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Non-Tech : Any info about Iomega (IOM)?
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To: Jon Wagner who wrote (2152)5/28/1996 8:24:00 PM
From: Jay Chaffin   of 58324
 
Jon,

*****DISCLAIMER, the information provided below is believed to be
correct but should not be construed as expert advice. You should
contact the IRS or you local tax professional to obtain expert
advice.*****

While Tony T. gives the correct ideas, I will supply the numbers.

You would have to pay short-term capital gains taxes on both gains:

1) 5500-2500 = $3000
2) 18333 - 5500 = $12833

or $15833.

Note: you also get to include the cost of brokerage commissions
on both purchases and sales. So, if you paid $50 in commisions to
buy and $50 (arbitrary numbers) to sell, then you would pay taxes on:

1) (5500 - 50) - (2500 + 50) = $2900
2) (18333 - 50) - (5500 + 50) = $12733

or $15633.

On a slightly diffferent note: From what I understand, you also get
to include the cost of options when calculating basis. For example

1) you buy 1 contract of Jun 40 calls for $500 + $50(arbitrary numbers)
2) stock goes up to 60 by expiration and you want to exercise the
option...so you ante up $4000 + $50(commision) = $4050.
3) you sell at 60 for $6000 - $50(commision) = $5950
4) you pay taxes on:

5950 - 4050 - 550 = $1350

*****DISCLAIMER, the information provided above is believed to be
correct but should not be construed as expert advice. You should
contact the IRS or you local tax professional to obtain expert
advice.*****

Hope this helps

Jay
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