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

To: Jack Spratt who wrote (4116)	3/14/1998 12:08:00 PM
From: Investor2	Read Replies (2) \| Respond to of 42834

RE: "Question; If at some time BB recommends a zero position on holdings, won't I get reamed on capital gains?" Bob states that one should always consider the tax consequences of trades. As Bob also states, one way of solving the capital gains tax problem is to hold the stock during a severe market decline. This will cause all of the gains to disappear! You could hold your stocks during a bear market and sell short SPY or buy puts, but, if the market declines, you will then have to pay taxes on the gains from these transactions. Best wishes, I2

To: Jack Spratt who wrote (4116)	3/14/1998 2:32:00 PM
From: Boca_PETE	Read Replies (1) \| Respond to of 42834

JackS: RE:<won't I get reamed on capital gains?> Your basis on the MRK for purposes of figuring cap gains tax would be the donor's cost basis PLUS the gift tax attributable to the increase in value of the shares at the time of the gift (E.G., $45 less donor's cost basis = increase in value multiplied by the applicable gift tax rate = gift tax applicable to donor's increase in value at the time of the gift). In short, your cap gain tax would be figured on more than the difference between MRK's share value at sale less the $45 value at the time you got the gift. P