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Subject:  Re: Margin Interest Date:  4/25/1997  1:57 PM
Author:  TMFTaxes Number:  6 of 124586

On Thu, 24 Apr 97 14:02:18 -0600, dmeredit wrote:

I will probably be incuring significant (in the hundreds of dollars) in margin interest this year. I did this as I wanted to get into certain stocks earlier in the year, in anticipation of my bonus (which has since paid off most of the interest).

My question is, if I make no short term capital gains this year, how can I get the tax advantage for the margin interest. Last year I made some ST capital gains and was able to offset some of these with the margin interest, but I understand that it is different for LT Capital Gains.

Also, if I made some ST capital loses, can these be used to offset against my personal income or only against other short term capital gains.

Thanks for any help.>>

Understand that Investment Interest is an animal in and of itself. It has it's own separate rules and restrictions. To learn more about Investment Interest, you'll what to check out IRS Form 4952 and instructions, and IRS Publication 550. That will provide you with significant information that will be useful to you and your tax planning. Remember also that investment interest is treated as an itemized deduction, so if you are not able to itemize your deductions, your Investment Interest may be of very little value to you.

Now then, you make a reference to long term