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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: Dwight E. Karlsen who wrote (10665)	12/14/1997 9:25:00 AM
From: JHC44	Read Replies (1) \| Respond to of 22053

Dwight, not to be too nitpicky (is there such a word?) but, regarding the the Social security rates for self-employed people... self employed do get a deduction for 1/2 of their self-employment tax on the front of their 1040. By having this deduction it does reduce the effective rate of the SE tax to about 13.1% vs. 15.3%. I usually like to point this out to my self-employed clients to reduce the pain a little. Jason

To: Dwight E. Karlsen who wrote (10665)	12/14/1997 3:43:00 PM
From: David Lawrence	Read Replies (2) \| Respond to of 22053

To extend on your comments, Dwight, the nature of the pass-thru income determines if it will be subject to self employment tax. If you take a reasonable salary, you can allow the rest to pass through as passive income, which will not be subject to Medicare and Social Security tax. (I know you know, but am commenting for the benefit of others.)

To: Dwight E. Karlsen who wrote (10665)	12/14/1997 4:20:00 PM
From: Wayne Lian	Read Replies (2) \| Respond to of 22053

Dwight, do you know the answer to the tax liability from the following option and stock trade: On 100 shares XYZ purchased 3 years ago at $10, one call option has been written at a striking price of 50. Now the call is being exercised. On the stock position it will trigger a capital gain of 50-10=40 per share. Question is: Can you avoid realizing the capital gain by buying 100 XYZ shares(say at 55 per share) in the open market to be delivered in places of the shares purchased 3 years ago?