Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 256.89

-1.2%

Dec 31 3:59 PM EST

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To: Jacob Snyder who wrote (10255)	11/3/1997 8:28:00 PM
From: David Aegis	Read Replies (3) of 70976

LEAPs vs. Margin: I tend to think that for taxable accounts that the use of margin is superior in low leverage situations. LEAPs are taxed 60% short term gain 40% long term gain (or is it the other way around?) while margin purchases are based on the true holding period (as long as a margin call doesn't force you to start liquidating a position at a time when the stock is low). Also, I think you have to mark your LEAPs to market and pay taxes on them every year whether or not you cash in the holding. Tax pro's please help out on this. --David

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