Conference nyoss1::market_investing

	Re: .0

	Question 1:  Yes.  You made a profit, so it is a capital gain.

	Question 2:  If you're in the 28% bracket, you will have to pay
		     28% of the $3,000 profit.  There is no difference
		     in the tax rates (at present) between earned income
		     and either short- or long-term capital gains.

	Question 3:  Yes and No.  There is a cutoff between what is classed
		     as short-term or long-term capital gains (though I think
		     the cutoff is at 1 year right now), but both of these
		     categories are taxed at the same rate.  (There are
		     differences in how losses are handled which is why the
		     classification still exists.)

	Question 4:  Same rate.  For you (from your first question), 28%.

	P.S. question:  Nope, I've never heard of the IRS distributing state
		     tax forms.  Post offices usually stock both the Federal
		     and local state forms, however, so check there.  If
		     that fails, libraries usually have a set that you can
		     copy.

							-craig

If your local bank or library doesn't have the particular state tax form
you want, there's usually a phone number on the tax forms they *do* have
(or the package you received in the mail).  I find it's much easier to
order tax forms by phone than to hunt for them.  BTW, the IRS forms number
is 800-TAX-FORM.

    Good luck trying to get through to 800-TAX-FORM - hope your phone has a
    "redial" button!
    
    /Charlotte

    Also, Mr. Sacks, the 800-TAX-FORM number is only for federal forms.

    I had a miserable time getting MA State forms this year (they sent me
    the wrong flavor).  I tried all the recommended places (Town Hall,
    Banks, etc.)  Finally, I succeeded in the Marlboro Public Library.

    L.-who-has-already-received-his-Fed-Refund :-)

     A question on Capital Gains in an individual account.

     Are profits earned in a Mutual Fund taxed then they are transferred
     from one fund to another within a fund group???

     Example:

     $5000 including profits of $2000 made in the Financial 
     Strategic Technology Mutual Fund is transferred to Financial 
     Industrial Income Mutual Fund. (Funds in the same group)
     Is the $2000 taxable at the time of the transfer or upon withdrawing
     from the Industrial Income Mutual Fund.

     Many Mutual Funds allow the transfer of money from one fund to another
     one (within their umbrella of funds) with small of no transfer fees.
     

re .4:

>    Also, Mr. Sacks, the 800-TAX-FORM number is only for federal forms.

Since I said it was the IRS number, and .1 said the IRS doesn't distribute
state tax forms, I thought this was obvious.

>    I had a miserable time getting MA State forms this year (they sent me
>    the wrong flavor).  I tried all the recommended places (Town Hall,
>    Banks, etc.)  Finally, I succeeded in the Marlboro Public Library.

Dept of Revenue is (617) 727-4545.  They also have district offices.
Check your blue pages.

    re .1

    Could someone enlighten me as to what the difference is between short
    term capital gain and long term capital gain? I know that profit are
    taxed the same but .1 mentions that they are handled differently for
    losses...

    Peter

    Holding period determines 'term'.  Held *more* than 1 year == 'long
    term'  Held 1 year or less == 'short term'.
    
    If you're in the 31% bracket, there is a way to figure your capital
    gains tax on the Schedule D and only pay 28% on the gain instead of the
    31% rate.  I can't remember right now if that only applies to long-term
    gains, or if it applies equally to all gains.  Take a peek at a "D"...
    The 28% 'sidestep' is found on the back page and will tell you which
    number from page 1 you pick up.  (I think that short-term gain pays
    31%, but I'm not sure without checking the form.)
    
    SteveSov