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Microcap & Penny Stocks : International Automated Systems -- Ignore unavailable to you. Want to Upgrade?

To: Frederic M. Civish III who wrote (1175)	12/31/1997 10:06:00 AM
From: Bob Walters	Respond to of 7618

Fred, I just hope people are not going to fall for rising prices if it does happen today. If they are daytrading, better watch closely. Does anybody know when Stanford starts up again? Does school start 2nd or 3rd week of January, IMHO that is when things may start to happen. Right now their closed.... +++Bob---

To: Frederic M. Civish III who wrote (1175)	12/31/1997 2:00:00 PM
From: paulmcg0	Read Replies (1) \| Respond to of 7618

[for tax purposes I have been told that they must cover their shorts] I don't think that's true -- please refer to IRS Publication 550, Investment Income and Expenses, available online at irs.ustreas.gov . I think that you are confusing this with the Section 1256 requirements, which apply to some derivatives held by brokers, such as options. (I know about Section 1256 because it applies to me also, even though I am not a broker. But, I have several derivatives based on broad market indices like the S&P 500 and the Dow 30.) Section 1256 doesn't mean you have to cover anything though -- you just have to declare the market value at the close of business on December 31, and you have to report a capital gain or loss, even if you don't sell. Then, when you actually sell, you have to recalculate your loss or gain for tax purposes. Ah, the joys of being required to fill out a Form 6781... Anyways, as far as I know, I don't think you can short IAUS (or buy it on margin for that matter), because the price is below 5 dollars a share. I recall some regulation to that effect, and the paperwork for various brokerage accounts also mentions this. Paul McGinnis / PaulMcG @ aol.com