I forgot the punchline to my hypothetical: in the scenario sketched out, you
end up owing $180k in taxes on what was a $100k + interest loss. How's that
for fun? Now, let's say you come out of the SEC period while the stock's at
$1 a share, and you sell; you've now got a ($100 basis after adjusting for
previous taxes - $1 proceeds = $99) $990,000 capital loss that you can take.
Here's the punchline: there's a $3000 cap on per-year capital losses. So,
for the next 330 years, for all your trouble, you get a $3k itemized
Wow. Our system is just too cool.
I really pity the poor dot-com schmucks who actually got caught in this kind
of situation. By comparison, I feel like I got off easy.
This archive was generated by hypermail 2b29 : Sun Apr 29 2001 - 20:25:26 PDT