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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 (1855)	2/8/1999 12:02:00 PM
From: LemurHouse	Respond to of 5810

Colin, MRE, Nelson, and threaders: Thank you the excellent discussion on deductibility of margin interest. Money is fungible, and so the IRS' position on the matter doesn't seem to make a whole lot of sense, except of course as a way of increasing tax revenues. (Which is what they are all about, after all.) Nelson's approach of selling first, moving/using the money, and then re-buying on margin is the approach I struck on for myself. I was concerned that this might be a little too cute in that it seems contrary to both common sense and the "fungibilty" principle, so I was gratified to see it validated here. Thanks again.

To: Colin Cody who wrote (1855)	2/8/1999 2:35:00 PM
From: J R KARY	Read Replies (2) \| Respond to of 5810

Colin can the margin interest be deducted without margin payment ? Can the margin interest be itemized as a annual investment expense charged against that year's investment (dividend etc.) income ? The alternative appears to be clumsy , which is full payment of the margin balance and using the margin interest (including past years ?) as a interest expense ? The annual margin interest calculation as a itemized interest expense seems more reasonable - is it acceptable to the IRS ? Thanks in advance, Jim