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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Colin Cody who wrote (938)	4/5/1998 10:29:00 AM
From: Double Dipper	Read Replies (1) \| Respond to of 5810

To anyone with an answer: TAX Question regarding share conversion: If I owned shares of ABCD for say 5 months and they were converted to XYZ shares due to a merger, are share purchases considered to be 5 months old? For those who really plan to be long, we need 18 months under the new IRS rules to be considered long for tax advantage purposes. It seems like the original ABCD purchase date would be the basis for the XYZ shares for tax purposes, but I don't know that for fact. Can anyone with a better understanding speak to this issue? Kevin

To: Colin Cody who wrote (938)	4/5/1998 11:16:00 AM
From: Brendan W	Read Replies (2) \| Respond to of 5810

Colin, I've run small debit balances in IRA accounts with brokers before. The real world of securities transactions is pretty messy and this kind of thing happens a lot. The software they use frequently allow transactions to be entered on the margin "side" ... obviously, this shouldn't be so, but it is. When it happened with my accounts there was some small error involved and I just waited for a dividend to take out the problem.

To: Colin Cody who wrote (938)	4/5/1998 1:42:00 PM
From: farrark.	Read Replies (1) \| Respond to of 5810

I understand that Margin interest is deductible, but on what form, Is it added to cost basis of stock or what? Also, if you borrow money other than margin(Credit card, etc,) to buy stock, is this interest deductible as well, and where is it deductible, (what form) I'm new to stock market this year and pretty ignorant on IRS rules on stock. Also, do you list all trades, losses and gains, or do list the end result. Also is $3000 the max. loss you can report for one year and can all the rest be used in the following year to offset gains or are you limited to $3000per year/ Thanks

To: Colin Cody who wrote (938)	4/5/1998 6:29:00 PM
From: B4TheBell	Read Replies (1) \| Respond to of 5810

Colin, IRA accounts allow covered call writes (if approved for option writing). A debit balance incurred through a transaction can be offset through a covered call write if desired. Now to pose a question... How do I record the dates on Sched. D for short transactions? i.e. 4/15/97 sold 100 shares XYZ Corp. (short) 4/16/97 sold 100 shares XYZ Corp. (short) 4/22/97 bought 200 shares XYZ Corp. (cover) Do I put 4/22 as "date acquired" in column (b) and 4/15, 4/16 as "date sold" in column (c)? Any help appreciated... B4