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Greetings All,

I am new to the board. I have a question regarding capital gains. Most of my income this year will come from short term capital gains. It should amount to about 90,000 in short term gains and about 50 in long-term gains. I think the tax brackets look something like this:

24 15%
24-58 28%
58-121 31%
121-263 36%
263- 39.6%

My question is if I had 140 in AGI (assume 3000 in salary) after all the different exemptions, would I pay 36% on all of the income, or would I pay 31% on all income up to 121, and then 36% on all income thereafter to 135? If it is the former, I may try to either sell calls on a few postions (The primary gainers were technology shorts originated in late July), or hold a few until 2002.

Thanks in advance and I wish everyone a wonderful Yom Kippur,

Any assistance would be greatly appreciated
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