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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 (1795)	2/1/1999 11:41:00 PM
From: TraderXx	Read Replies (1) \| Respond to of 5810

Guys...I know this might be the wrong thread to ask this question, but maybe one of you can help. I'm looking to buy a home and I wanted to know if I am able to provide my stock or mutual fund shares as my downpayment to the mortgage company. If so, will I retain ownership of the shares? will I be able to buy and sell shares in this account? If I were "gifted" the stock or mutual fund shares, would I still be able to offer them as downpayment? What are the capital gains taxes for me or for my relative (who gifted me the shares)? I hope someone can help me. If not I appreciate your help in any way to direct to the appropriate source or message boards. Thanks again.

To: Colin Cody who wrote (1795)	2/2/1999 12:08:00 PM
From: Thomas Stewart	Read Replies (1) \| Respond to of 5810

Colin: My research implies that the answer turns on a funny point: whether the transferor is "diversifying." So, if I have all IBM stock (no other shares) and want to join an investment club, I will be taxed if the investment club has a diverse portfolio. On the other hand (and this is where that answer doesn't make much sense to me) if I have a diverse portfolio and transfer stock no taxable even occurs?? In fact I am already a partner in an investment club with diverse holdings. If I transfer stock in the same amount and type as the other partners I do not view that as diversification. Is that the way to analyze the question?