SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Strictly: Drilling and oil-field services
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: double-plus-good who wrote (47888)7/13/1999 3:10:00 PM
From: dfloydr  Read Replies (1) of 95453
 
Right. Speaking from memory you get to deduct the taxes paid along the way. The idea is that:

a. you are deemed to have been the "producer" and have already paid taxes, and

b. your asset base has gone down because you sold some off so you get to deduct the cost.

At the end of the year you have less left in the cupboard to sell next year ...etc ... until eventually the cupboard is bare and the value of the holding is zero.

I suppose one could time the purchase of such an asset to get the bulk of the tax benefit ...

Or you could do well if you bought in to the income stream in a declining interest rate environment which might allow the price of the holding to appreciate much as a bond might.

I tried it and did not like it. Give me an investment that is ongoing and growing. I regard these as buying into corporations with financial cancer ... death is certain.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News