I had a rude awakening last April, and vowed NOT
to repeat the performance. The market turbulence
this year gave me plenty of chances to take losses
as I upgraded my portfolio.

Right now, I still have a taxable long-term gain
of a few thousand, but my short-term is in negative
territory.

My QUESTION: When my taxes are prepared, will the
short-term loss offset the long-term gain? I realize
that they are treated differently, but what I'm
asking is whether the IRS allows you to deduct the
short-term loss and pay on the long-term gain.
(Sorry for my confused language)

I'm thinking of taking another loss before the
end of '98. Then my short-term losses would
exceed my long-term gains even further. Is
this OK...or is there some screwy rule I'm breaking?

Any help appreciated....(obviously I need it <Grin>)

Jack