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To: Steve Lamont who wrote (19106)5/28/1999 10:09:00 AM
From: David Petty  Respond to of 41369
 
Steve, that is partially correct. It can only offset "investment income" like interest, dividends,etc.... Portfolio income like capital gains is not interest expense offsetable... You can elect to treat part of your capital gains as "investment income" put then you lose the long term tax rate break... point is mute if short term cap gain taxable at ordinary rate.

Still think that tax regs ought to fit on a post card as one Congressman said...

David II