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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Anthony Keyodo who wrote (3463)	2/17/1998 5:52:00 AM
From: Boca_PETE	Read Replies (1) \| Respond to of 42834

Tony: RE:<If I now sell UTEK shares at a loss and repurchase into my Sep-Ira; (1.) Can I use the loss to offset other gains for the year? (2.) Are there other consequence to this action? 1. Yes -and believe you can deduct up to $3M net loss if you have a loss excess after such offset. See your tax advisor or mock it up on 1040 Schedule D. 2. Benefit is reduced taxes from your of loss deduction (gain offset), but in a SEP-IRA, all subsequent UTEK appreciation would be taxed at ordinary tax rates in the period funds are withdrawn from the account (you lose the lower cap gain tax rate treatment). You've already got a tax shelter if you hold onto UTEK shares and don't sell them. Unrealized appreciation (depreciation) of UTEK shares is not taxed. You're only taxed when you sell and realize gain, and at the lower cap gain tax rate if the shares are held the required 18 months (12 months holding for a 28% cap gains tax max). If the Brinker scenario unfolds as predicted, UTEK should be rising throughout 1999-2000, more than 18 months into the future to get you that lower cap gain tax rate. Personnally, I think SEP-IRA's would work better for a high turnover aggressive growth funds with large year-end distributions of short-term gains from trading, or bond funds which generate income taxed at ordinary rates. BTW, that's a very unprofessional signature you've adopted. P