RE: Dividends

From: "Jackson, Anthony D." <JacksAD1@central.SSD.JHUAPL.edu>
Subject: RE: Dividends
Date: Thu, 3 Dec 1998 19:33:53 -0500

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	Pete,
		Don't Worry Be Happy!  I suggest you just pay the taxes.
Make as much as you can and pay the taxes.  Now if you don't have other
assets to use for the taxes you can sell shares to pay the taxes.  You would
want to use the designated shares method  and sell shares that have low or
no capitol gains if possible.  

	"TJ"
	
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> Date: Sun, 29 Nov 1998 11:24:19 -0500
> From: "Peter & Karen Diamond" <diamond@vsi.net>
> Subject: Dividends
> 
> Hello everyone,
> I own some Bell Atlantic stock.  I like the stock and would be happy to
> keep
> it.  The problem is that the stock pays a nice dividend and through
> dividend
> reinvestments, I now own enough that the dividends are becoming a tax
> problem.
> As far as I can tell, there are only two options to avoid the taxes on the
> dividends;
> 
> 1.  Sell it.
> 2.  Sell $2000 of it every year and repurchase it into my Roth IRA.
> 
> I'm not inclined to sell, without a better investment in mind.  I'm also
> not
> thrilled with option #2, since it would take quite a few years to complete
> the repurchase.  There is also the capital gains issue.
> 
> Does anyone know of any other options?  Does the IRA purchase make sense
> after paying the capital gains taxes?  I have held it long enough to pay
> the
> 20% CG rate.  The stock dividend is about 3%.  My basis is about 50% of
> the
> current value.  I am in the 28% bracket for the dividends.
> Thanks.
> 
> Peter Diamond
> 
> 
> 

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