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

To: Steve Warkentin who wrote (1946)	2/28/1999 9:38:00 PM
From: Mammon	Read Replies (1) \| Respond to of 5810

Tax question: I'm sure this is a stupid question, but I've got to ask it anyway. If I sell 10,000 shares of stock in one day, but in 4 different increments, so it shows up on my 1099 form as four different trades, can I just add them all together since they're on the same day and enter them as one trade on my tax form? Thanks in advance for the reply...

To: Steve Warkentin who wrote (1946)	2/28/1999 10:47:00 PM
From: dpl	Read Replies (2) \| Respond to of 5810

Simply that it depends on when you buy even long term.Everyone has heard that the market averages something like 10 or 12% a year.The problem is that is an "average".The important thing is how that average is made.The market has long periods when is does much more followed by long periods when it does less,even negative,in order to "make" that average. If you invested money in the market in 1929 and I put an equal amount in T-bills it would be 1963 before you "caught up" to me.That's 34 years of risk for the same return I had in bills.In fact by 1966 I would be ahead of you again and it would not be until 1986 before we were even again.That's 57 years. Another bad time would be the mid 1960's.It would be in the early 1990's before you would pull ahead. Now this sounds interesting but one would say I picked only two times out of about 60 years.Well if you do some research into money flows into the market from the public(I realize that it is not that easy before WWII)you come up with three times this century when the public "discovered" the market. late 1920's mid 1960's and the last few years. The sad truth is the majority of people invest in the markets AFTER it has gone up more than it's long term average for a while. In the last 2 years almost a trillion dollars of new money has gone into the markets.In 1974 the market was 570.Two years ago it was about 7000.Think about it. A trillion dollars AFTER the market has gone up more that 1000% Anyway this is a thread about taxes and probably off topic. David