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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Kaye Thomas who wrote (2269)	8/6/1999 5:19:00 PM
From: Allen Furlan	Respond to of 5810

Kay, thanks for the help you provide. Would your tax guide discuss the following situation. Buy a stock on margin,sell an in the money LEAP to cushion the downside risk associated with margin purchase. Stock rises and LEAP repurchased in December with sizeable loss,profitable stock held until next tax year. or let option be assigned following January. What are these tax outcomes? What if LEAP was slightly out of money at time of execution? I bought Motley Fool tax book and it is useless for these kind of tax situations. There are many interesting tax strategies available using leaps and would love to purchase a book that addresses these.