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Microcap & Penny Stocks : VLVT (was CSMA) -- Ignore unavailable to you. Want to Upgrade?

To: TraderGreg who wrote (3568)	12/14/1997 4:31:00 PM
From: Dick Jaffe	Read Replies (2) \| Respond to of 11708

I saw an article in today's Miami Herald that my put a crimp in the LPS subsidiary's future revenues. The headline reads: IRS WARNS ABOUT DEDUCTING 125% LOANS" It goes on to say: <The Internal Revenue Service is throwing cold water on the hottest mortgage product of 1997: the so-called "125 per cent loan-to-value" (125 LTV) financing that provides homeowners with more cash than their homes are worth.> <In its first public comments directed at the 125 LTV loan boom, the IRS warned homeowners earlier this month that deducting mortgage interest on loan amounts exceeding the fair market value of their homes is prohibited.> <People assume that if it's a mortgage, then the interest is always deductible. But under the federal tax code, interest "attributable to debt in excess of fair market value is not deductible."> As this becomes more widely understood, it may dampen the enthusiasm for this particular financial product. Dick