o: +lisa (6674 )
From: +Paul Viapiano
Sunday, Mar 8 1998 6:24PM EST
Reply # of 6675
Right on , Lisa!
Jmac, you need to read "It's When You Sell That Counts" by Donald Cassidy re:
refusing to sell because of tax consequences.
He tells of someone he once knew who wouldn't sell and take a profit because he
didn't want to pay the tax. The fellow also would not sell anything for a loss. Stocks
exist to be bought AND sold unless you plan on holding till you die. Ah, the ultimate
escape from the tax man!
Paul
From: +lisa
Sunday, Mar 8 1998 5:59PM EST
Reply # of 6675
The tech sector is going to be rough for a while.
Unfortunately, I don't have the luxery of being able to sell out. I have thousands of
shares of INTC and CPQ. Both, with great gains and can't afford to pay uncle sam
if i sell right now.
I dont know what your tax situation is..but when most people say this I laugh....
First you said that you were disappointed with INTC and it didnt give you an
acceptable return for you and your family
Now you say your gains are great and that you cant afford to sell..
let me ask you.....selling 5000 shares at 100 versus selling 5000 shares at 80...is
100,000....would that have paid the tax man????
and what if it dropped another 15...thats another 75,000
there comes a time where you pony up and pay the tax man....
maybe in your particular case you would rather risk the loss than pay the tax
man....because of capital gains...etcetcetc..waiting for a lower tax bracket etcetcetc
if nothing else...you could short against the box.... |
