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To: Mike Buckley who wrote (23046)	4/19/2000 12:52:00 AM
From: john99walsh	Read Replies (1) \| Respond to of 54805

Mike: For those who don't understand the particulars as you do, the interest offsets income (such as dividend income) but it doesn't offset capital gains. Take a close look at line 4e of tax form 4952 (Investment Interest Expense Deduction). This is where you can elect to treat capital gains as investment income so that you CAN use your margin interest to offset these gains. By the way, form 4952 is also how you forward to future years any margin interest expense that you do not use in the current year. Another fine point about margin interest is that shows up on line 13 of Schedule A (Itemized Deductions). As your AGI (Adjusted Gross Income) increases there is a phase out of such time honored deductions as real estate taxes. The is NOT true of Investment Interest which survives in tack to be fully used in reducing taxable income. The tax aspects of margin investment expense are very favorable. John Walsh

To: Mike Buckley who wrote (23046)	4/19/2000 5:45:00 AM
From: John Walliker	Read Replies (1) \| Respond to of 54805

Mike, OT : One of the uses of margin, often overlooked, is that the interest is tax deductible against investment income. But not in the UK - at least not for personal accounts. I too feel very uncomfortable about the use of margin, although I make a lot of use of options. The big difference is that with options you can lose no more than you "invested" and there is no forced selling except perhaps at expiry. John

To: Mike Buckley who wrote (23046)	4/19/2000 10:18:00 AM
From: Riskmgmt	Respond to of 54805

Mike; Re: At the risk of jinxing your appearance here, it's awfully nice to see you hanging 'round these parts. :) Thank you Mike. I reason I seldom post is that you have such a talent pool that, by the time I am ready to respond someone else has said it and better than I could have. An example is John Walsh's post on line 4 e of tax form 4952 and margin interest deductions. Anyway, for those you you NOT addicted to CNBC and who don't know, 2 of the GG CEO's are on soon, Qcom and CSCO. Now I hope someone else didn't already post that. Ray