Well like I told you....I sold some of the higher priced CKFR shares I held....deducting the loss, and taking the proceeds to make IRA contributions for me and momma, and the kids.
Here's how....say you bought 1,000 shares @ and average of $23. Sell all at $11.00
Capital Loss of $12,000....
Now take the $11,000, what's left, contribute to yours and your wifes IRA $2,000 for 1998, and 1999...contributing early for 1999. Deduct $4,000 this year, $4,000 next. Now take the Kids set up Educational IRAs Contribute $500 each $1000 for both...each year. So $5,000 this year & $5,000 next year total...keep a Grand of the 11.
You started with 1,000 shares and a basis of $23,000....you have very close to that in shares and a $1,000 cash...and you will write off nearly all the CKFR investment over the years, and if you do sell @ my $225 number...you pay no taxes, because it's in an IRA.
That's what this stupid fool will be doing this week, writing off some CKFR twice, once for loss, once of contribution.....and getting "tax free shares @ 10ish" compliments of the GOV.
Is there a Moral? Yea don't contribute to your IRA until you have a loss on a long term hold. |
