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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: steve harris who wrote (103054)	4/8/2000 10:06:00 AM
From: Bill Jackson	Read Replies (1) \| Respond to of 1575784

Steve, If you are in a loss position and sell before your year end to freeze the loss, you then must wait for a time before you buy back the same shares....30 days, I think, but I have never done that so I am not sure. As far as I know if you sell it you make a profit and right now 66% of that profit is taxed as ordinary income. So an incremental $1000 on which I pay aboot 54% as ordinary income or $540 taxes is turned into a $660 gain on which I pay 54% or $$356 for an effective capital gains tax of 35.6%. We also have what is called 'flow through' share purchases, where you buy common stock in a provincial public company and you are allowed to deduct the purchase price from your taxes in stages over three years. Once you have deducted the full price then any proceeds have a zero cost base and are taxable with the 66% rule, but that income is deferred. Used by a lot of retiring people in high brackets(all Canadians) who defer taxes on earned income in high pay years into capital ganis after retirement at the 66% rate staged over years. I suspect there are similar schemes in the USA for high bracket people. The problem here in Canada is the too much government and too many civil serpents all employed for life at high union scales for minimal work...I could go on, but boring.....come the revolution. Bill

To: steve harris who wrote (103054)	4/8/2000 6:15:00 PM
From: Bert Herman	Read Replies (2) \| Respond to of 1575784

Re:taxes At least that is on positive thing about living here, we don't have taxes on capital gaines. The negative is, this must be the only thing we don't have taxes on. Bert

To: steve harris who wrote (103054)	4/9/2000 1:32:00 AM
From: chic_hearne	Read Replies (1) \| Respond to of 1575784

RE: taxes-"Right now, I'm working on a way to roll my April options in to July/October/Jan options. I have to come up with the best way to avoid taxes this year." How can you avoid paying taxes by rolling options into later dates? A gain on a sale is taxable is it not, even if you buy back similar or identical assets? If you exercise options or get them exercised against you, you an add (or deduct) their value into the stock you gained, but that is the only tax delay I know of. Bill Jackson I think mentioned in Canada you can sell a stock and buy it back within a certain time frame and carry/defer the gains, but not here in the states. Did I misunderstand? steve Steve, Yes, you misunderstood. I will be taking a huge hit with my 51 April contracts, that's unavoidable. What I am trying to do is find a way to roll those profits into july/october/jan calls that I don't have to take a tax hit with (at least until tax year 2001). For example; anything january can be put off until next year. If I buy July/October, I want to make sure I can exercise so that taxes can be delayed until 2001 (minimum). Obviously, this "processor" game cannot be predicted very far in advance. But, I want to put myself into a position where I have a good chance of taking a long-term cap gain as opposed to a short-term gain. chic