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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: OldAIMGuy who wrote (7640)6/9/1999 8:35:00 PM
From: LemonHead   of 18928
 
Hi Shorty, can you give us an example with a run down on the numbers. It's obvious that your scratch pad must be near by.

Long term gains start after a year of holding onto a stock. If we are to sell shares during the first 12 months, we are taxed at a rate that's nearly 50% higher than if we waited a full year before selling. It might be both tax efficient and prudent to wait for that one year clock to run out before commencing FULL AIM.

I see two ways to go. If you are building your equity warehouse, and you have large up front expenses you may need to pay the taxes in order to insure that the investment can grow. If your warehouse is fully operational and all the equipment is in good shape then it might be better to wait for the annual depreciation before you commit to new equipment (taxes).

Got my helmet on, so fire away.

Keith
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