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To: Pr-Ac Man who wrote (13221)	1/1/1999 11:50:00 PM
From: Ken Salaets	Respond to of 19331

PA, a very relevant post. I know Bruce has been chewing on this issue as well. I am a complete novice re this matter, although I do file my own taxes, which can get pretty complicated with my business and all. I hope others will engage you and we can all be enlightened. Thanks again! And once more, a Happy New Year to all. Ken

To: Pr-Ac Man who wrote (13221)	1/2/1999 11:13:00 AM
From: Ken Reidy	Read Replies (1) \| Respond to of 19331

To add to your post,for those who make charitable contributions, a contribution of the appreciated shares would be a tax wise move. A taxpayer can donate appreciated shares held longer than 12 months to their qualified charity and deduct the market value of the shares on the day they are donated. Hence, you avoid paying capital gains on the shares you donate and you increase your itemized deductions.

To: Pr-Ac Man who wrote (13221)	1/2/1999 11:17:00 AM
From: Ed Pettee	Respond to of 19331

Pr-Ac Man, I believe your correct on the exceptions. I will defer to Colin and Kaye Thomas at fairmark.com , both of whom have been extremely helpful to me on tax issues. They guided me in converting my Traditional IRA to a Roth IRA this past October when my basis in Dctc was at $1.27. Although I'll be spreading the tax on the conversion over the next four years, the growth on any buy out will be tax free after a five year period or on 1 Jan 2003. I am a firm believer in looking forward on all tax issues. Being retired and living on a fixed income, these issues become more important than they used to be when I was working and dumping all the stuff in the lap of a tax consultant, and trying to find shelters. I am already trying to figure out what would happen if Forbes got elected and his flat tax of 17% was approved. Does my commitment to pay taxes on the converted IRA funds stay with the current rate (28-31%) or do I get a break old by moving to a lower rate? His chance of getting elected is about the same as me hitting the Florida Lottery. Have a Happy and Prosperous New Year.

To: Pr-Ac Man who wrote (13221)	1/2/1999 12:45:00 PM
From: Toni Wheeler	Respond to of 19331

PAM, Lurking on another thread, came across this...our very own resident 'tax expert' is highly regarded: <<<The expert on SI on this topic is a fellow named Colin Cody. Look for him on the tax thread: Subject 5727; L&S...O&S T.

To: Pr-Ac Man who wrote (13221)	1/2/1999 2:45:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 19331

PA your reading of the law is correct (although they have been monkeying around with the exemption from 100% of last year's tax to 110% of last years tax) and the replies I read so far were also on target. The charitable gift might be interesting. If you gave away $10,000 worth, you would be left with $4,300 cash (est max tax rate savings) after taxes. Whereas if you just kept those shares you'd get to keep $7,500 in cash after taxes. So for a net cost to you of $3,200 to you your charity received $10,000. (but see itemized deduction limitation below) You might also consider prepaying your state income tax in December in order to get a current year deduction (subject to the AMT and subject to limitation below) You might also payoff all margin loans as the interest would likely not be deductible to qualify for the 20% rate. You might also defer all other itemized deductions until 2000 as these would likely not be deductible. (but see charitable deduction above). You also might look into a special tax deferral by investing proceeds into SSBIC stocks. You also might look into gifting low priced shares to younger generations (and lower 10% brackets). Good Luck! Colin