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Microcap & Penny Stocks : 1ST MIRACLE GROUP (MVEE), founders last co. went $0.20-$46 -- Ignore unavailable to you. Want to Upgrade?

To: Patricia Smith who wrote (3555)	5/30/1999 12:18:00 PM
From: John Booth	Read Replies (1) \| Respond to of 5541

Here you go Patricia. Short term capital gains is less than a year, long term greater than a year. See below for more detail. From ftp.fedworld.gov I have heard things about holding beyond 2 years but I think that's slated to happen after 2002 or around there--so if your thinking real long term then that may be applicable. I would say that if your holding it that long then depending the stock it may be more favorable to take your gain you received after the year and re-invest that money than to hold. Example. You are a cash method, cal-endar year taxpayer. You sold stock at a gain on December 30, 1998. According to the rules of the stock exchange, the sale was closed by delivery of the stock 3 trading days after the sale, on January 5, 1999. You received payment of the sale price on that same day. Report your gain on your 1998 return, even though you received the payment in 1999. The gain is long term or short term depending on whether you held the stock more than 1 year. Your holding period ended on Decem-ber 30. If you had sold the stock at a loss, you would also report it on your 1998 return. Holding Period If you sold or traded investment property, you must determine your holding period for the property. Your holding period determines whether any capital gain or loss was a short-term or a long-term capital gain or loss. Long-term or short-term. If you hold in-vestment property more than 1 year, any capital gain or loss is a long-term capital gain or loss. If you hold the property 1 year or less, any capital gain or loss is a short-term capital gain or loss. To determine how long you held the in-vestment property, begin counting on the date after the day you acquired the property. The same date of each following month is the beginning of a new month regardless of the number of days in the preceding month. The day you disposed of the property is part of If your basis is determined by the fair market value of the property, your holding period starts on the day after the date of the gift. Securities traded on an established mar-ket. For securities traded on an established securities market, your holding period begins the day after the trading date you bought the securities, and ends on the trading date you sold them. Ignore the settlement dates for tax purposes.