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Financial Planning / Tax Strategies


Subject:  Re: re: Margin Interest Date:  12/11/2005  2:24 AM
Author:  DtrrrJoel Number:  81863 of 127617

Capital gains can be elected to be a part of your investment income, but by doing so, you lose the favorable tax rate for long-term capital gains.

If you are electing to use your capital gains to be part of investment income just to deduct an equal amount of margin interest how would there be a tax on that income since the deduction will reduce the AGI by the same amount?

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