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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Chris Carlson who wrote (73614)	1/14/2000 1:51:00 PM
From: Knighty Tin	Respond to of 132070

Chris, see Message 12574968

To: Chris Carlson who wrote (73614)	1/14/2000 2:15:00 PM
From: Skeeter Bug	Respond to of 132070

chris, intel could depreciate their purchase. if a real estate company buys a house to rent out, they can't expense the purchase and then count all their income as profit. that w/b absurd. yet that is exactly what intel appears to be doing.

To: Chris Carlson who wrote (73614)	1/14/2000 5:44:00 PM
From: Knighty Tin	Respond to of 132070

Chris, I was in a hurry when I read your note and gave it short shrift. Sorry. I didn't realize you were thinking of Intel investing like an individual when it is, of course, a corporation. The price of the companies bought is not an expense. It is an investment. That is true for individuals and corporations. However, for a corporation, banking fees, proxy solicitation costs, legal representation, goodwill, R&D in progress, etc. from doing a deal are all deductible expenses. Bet your last nickle that Intel is taking the tax deduction this quarter. Also, in the case of Intel, expenses of this sort recur as often as capital gains from the hedge fund operations. So, by claiming the one time gains as a part of income in their headline teaser while eliminating these M&A expenses is just sliming in the first degree. Now you and I don't get to deduct any of the costs of our investments, not even interest on margin debt, any more. However, we can capitalize some of them, such as brokerage fees. But Intel wants to poor mouth the tax books while naysaying the same item on the report to shareholders. People used to go to jail for keeping two sets of books. <g> Of course, in the body of the release, they finally do tell the truth about the effect of both the cap gains and M&A expenses. Want to bet that 95% of the herd only read the headline?