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To: Sawtooth who wrote (49875)	11/14/1999 4:06:00 PM
From: Dooker	Read Replies (3) \| Respond to of 152472

Another tax scenario I find tantalizing is that if you are in the lowest tax bracket, capital gains of stocks held at least one year is only ten percent. So theoretically, if you had no other income, you could have huge unrealized capital gains, and sell enough to just stay under the lowest threshold. Margin interest reduces taxable income, along with other deductions. So for a family of four with a good mortgage interest deduction and margin interest deduction, it could amount to quite a bit. The trick is to not have any other income---I'm figuring next year I could sell up to almost $100,000 in capital gains and still remain in the lowest tax bracket(around $45,000 taxable is the threshold for a couple) if we had no other regular income. So in this scenario I think it would be better to sell on occasion in order to max out capital gains at the ten percent tax rate. That way, if you ever have to sell more, you have already reduced your capital gains. In purely mathematical terms it would probably better to never sell, if it weren't for the fact that capital gains probably must be realized at some point. Make sense? If it does, it seems like a good argument for nobody having a real job!! What will the kids think? I'm currently still self-employed and the wiffer works part time-- although maybe now I wish I had a real job just so I could quit!