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To: Uncle Frank who wrote (76136)7/10/2000 3:59:30 PM
From: PAL  Read Replies (1) | Respond to of 152472
 
Most of my portfolio resides in tax sheltered accounts which preclude the use of margin.

what am i missing here? you are an advocate of ltb/h.

a. tax sheltered account: when you withdraw (i presume that you are over 59 1/2), the amount is taxed as ordinary income.

b. regular account: if you ltb/h, and you keep the stock, there is no tax due until you sell the shares. When you sell the shares, they are taxed as a long term gain