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

To: wiz who wrote (85967)	11/28/2000 9:46:04 AM
From: Freedom Fighter	Read Replies (1) \| Respond to of 132070

Wiz, See, I'm not such a bad guy once you get to know me. :-) You just have to overlook my occasional bouts of hysteria. :-) Wayne

To: wiz who wrote (85967)	11/28/2000 12:04:36 PM
From: benwood	Read Replies (1) \| Respond to of 132070

Wiz, there are also taxes theoretically owed by folks who got stock options at a time when they showed a paper gain but, thanks to the huge decline in the NAZ, now show a paper loss. It's some weird trigger that requires them to pay taxes on their paper gain THIS year (the gain at the time they exorcised the options), UNLESS they SELL the stock to realize the ACTUAL loss before the end of this tax year. Probably already discussed here? Whatever, I believe that particular tax effect will hinder any tech rally this December, or perhaps accelerate a decline. Those people who get part of their compensation in stock options will sell to replace what is, in effect, a lost gamble on income, and they and others will also sell in order to avoid having to owe taxes on previously evaporated gains. Yet others will sell because of their mutual funds which sold stocks in spring at the peak and now which have made (or will make) capital gains distributions, leaving folks with a big tax bill (as some cases over 25% of the net asset value) but with no gains to show for it. Ouch!