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Old 07-13-2007, 05:33 PM   #11
taxwonk
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Quote:
Originally posted by Cletus Miller
Is that true? Passive investors get to deduct investment costs from OI rather than capital gains?
It depends. Some of the costs have to be allocated to the cost of acquiring the asset, which is capital. But the biggest chunk of money is from the tax-exempts, so they don['t deduct it at all. Of course, they also don't pay any tax on their income or gains.
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