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Microcap & Penny Stocks : LGOV - Largo Vista Group, Ltd. -- Ignore unavailable to you. Want to Upgrade?

To: A1 who wrote (2758)	12/23/1998 9:06:00 AM
From: lou debiase	Read Replies (3) \| Respond to of 7209

RE: YEAR-END TAX WRITE-OFF Lets say you make $50000 a year from your job. Now you bought 50,000 shares of Lgov at a average of .25 ( $12,500 ). Now because its the end of the year it's most likely not to have another run-up so you sell (YOU Sell FOR AS LOW AS YOU CAN) Why! Because: your 50000 shares are now worth $5500 at .11 to sell. now take 12500-5500 and you have a $7500 write off. your salary 50000-7500 loss = 42500 to be tax on. saving you ($2500) in taxes paid for 1998. Now remember you still have $5500 to invest Now you reinvest at any time (while its down) YOU BUY 42000 SHARES AT .13 (5500). now your in better postion for future run-up. AND THE BONUS IS YOU SAVED 2500 IN TAXES FOR 1998!

To: A1 who wrote (2758)	12/23/1998 11:34:00 AM
From: jmhollen	Respond to of 7209

Hi Al, Your stock purchases are an investment of your capital ($), usually in an attempt to create appreciation (gain via higher stock price) and/or income (from dividends, etc.). Dividends are "other income" or "investment income" that you have to claim on your tax forms. If you buy a stock for $1, and sell it for $2, you owe income tax on the $1 gain; unless it takes place in a protected account (IRA, etc.). Likewise, if you buy at $2 and sell at $1, then you have a -$1 loss. The loss is "deductable". Lot's of investors, who have a stock that is down (below their buy price) at the end of the year, sell it - and take the loss in the current tax year. Many buy the same stock back in early January - hopefully at the same low price - with the hope or knowledge that it will go back up. Hence, you will get a lot of "..tax selling.." in mid-to-31DEC to take advantage of the "losses". It tends to depress the market a bit. But, it also generates buying opportunities for people who "know" that some particular issue is going back up in the near future. This is the case with LGOV, in my opinion. :-) It's a bargain at these prices. I hope this explanation meets your needs. It's rather simplistic, so please confer with your tax accountant or investment advisor for the latest rules and rates on such matters. Merry Christmas....! John :-)