Re: "Hiding" capital gains

From: Brian Gordon <briang@netcom.com>
Subject: Re: "Hiding" capital gains
Date: Sat, 18 Dec 1999 09:44:26 -0800 (PST)

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> Date: Fri, 17 Dec 1999 15:43:30 -0700
> From: Jeff Salisbury <jeff.salisbury@xmission.com>
> Subject: Re: "Hiding" capital gains
>
> Brian Gordon wrote:
> >
> > I have a "happiness problem" -- humongous gains from ESO stock after IPO -- but
> > I can't stand the idea of giving up 40% of it to taxes.  A financial advisor
> > has just suggested I bury it in Oil Exploration/Drilling, with an outfit that
> > has a good track record, so that almost all of it it a tax deduction which is
> > never recovered.  Too good to be true?  More complex than I understand?
> >
>
> Brian,
>
> It isn't clear to me what your advisor is recommending -- Is he
> suggesting you sell some other holding you have that is a loser and
> offseting your gain with the loss?  Or, is he suggesting that you buy a
> limited partnership so you can offset the gain you have with the
> operating losses of the limited partnership?
>
> Jeff

The latter -- make the oil drilling investment with profit and have that almost
completely offset by depreciation and expenses in the first year.

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