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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: PitBull who wrote (5691)	4/5/1998 12:44:00 PM
From: studdog	Respond to of 74651

To all: Speech recognition is the next tech holy grail and MSFT is hot on the trail. There is a new forum established to discuss this area. Please feel free to contribute: Subject 20155

To: PitBull who wrote (5691)	4/5/1998 12:51:00 PM
From: Monty Lenard	Respond to of 74651

If a taxpayer can identify the shares of stock or bonds sold, his basis is the cost or other basis of the particular shares of stock or bonds. However, if a taxpayer buys and sells securities at various times in varying quantities and CANNOT definitely identify the shares that are sold, the basis of the securities sold is the basis of the securities acquired FIRST (Reg. 1.1012(c) ). Except for mutual fund shares, a taxpayer may not use the average price per share to figure gain or loss on the sale of the shares. A holder of mutual fund shares may choose to use the average basis of shares owned in a regulated investment company (mutual fund), if the shares were acquired at various times and prices and if they were left on deposit in an account kept by a custodian or agent for receiving or redeeming the shares (Reg. 1.1012(e) ). 129 The average basis is determined by using either the double-category method or the single-category method. Under the double-category method, all shares in an account at the time of each sale of shares are divided into two categories: those held for the long-term capital gain holding period, and those held for the short-term capital gain holding period. The cost or other basis of each share in a category is the cost or other basis of all shares in that category at the time of the sale divided by the total number of shares in the category. Under the single-category method, all shares in an account are combined. "First-In, First-Out" Rule. If stock is sold from lots purchased on different dates and at different prices and the identity of the lots cannot be determined, the stock sold must ordinarily be charged first against the earliest purchases (Reg. 1.1012-1(c) The "Reg" referenced are Regulations published by the IRS. Monty Lenard