Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Nasty P who wrote (159)	10/30/1997 10:34:00 AM
From: Colin Cody	Read Replies (1) \| Respond to of 5810

Nasty, Please provide a citation for your advice that merely investing in stocks via an S-Corp will turn what would have been "Investment Interest Expense" or as you indicated "Credit Card Interest" would be -> "deductible no matter how you use it". . I have yet to hear that the Debt/Interest TRACING RULES have been suspended for S-Corps. . Before you reply, please look at form 1120S, Schedule K, lines: 9, 11a and most importantly, line 19. . You might also want to comment on the prohibition of S-Corps from deriving more than 25% of their income from "passive activities" for three consecutive years. While not necessarily an issue here if set up correctly from day 1, I am afraid that without posting a warning of it - the Corporation may inadvertently terminate its S-Corp election. . BUT, then an S-Corp election would NOT convert personal credit card interest into deductible interest anyway! ...nor would it convert excess investment interest into currently deductible ordinary interest. In short an S-Corp would do NOTHING to the deductibility of interest whatsoever, FEDERALLY. An S-Corp could have STATE implications, either good, or bad, depending on the State involved. . Colin

To: Nasty P who wrote (159)	11/20/1997 4:03:00 PM
From: hpeace	Read Replies (3) \| Respond to of 5810

tax question. during the oct fall back my cost on atml has fallen.. I had puts so, I'll have to report that as income... but, can I buy a jan 25 call on atml and then sell my atml stk and take the loss on atml stk to offsite 1997 capital gains.. do I need to buy the jan calls first or can I buy them at any time??? is there a timing issue on selling the stk... I know I have to be out of stk for 30 days in order to keep it from being wash sale.. thanks I scanned through the tread and couldn't find this question but it's got to be there somewhere I read the code and it seems if I buy the jan 25 call on atml today and sell the stk next week then it's okay . as long as I buy the call before I sell the stk.

To: Nasty P who wrote (159)	12/17/1997 7:48:00 AM
From: Richard Nehrboss	Read Replies (1) \| Respond to of 5810

Actually to all: It appears to me that investment interest expense (margin), can be utillized more fully if one elects to use some of the capital gain from stock sale as investment income on Part II 4952. Am I right here? IE I have capital gain long and short, but little investment income (dividends etc), and a great deal of margin paid. So in my understanding, I can elect some of the gains as income and thereby receive the benefit of the margin deduction? Thanks Richard