European Stars And Stripes (Newspaper) - January 31, 1988, Darmstadt, Hesse                                Page 20 the stars and stripes sunday. January 31,198b investor s guide business news of Bill Doyle q. I lost Money in an investment plan two though sol out week before the Stock Market crash i in try $90.000 in a urn eni n it securities Mutual fund on Jan. 30, 1987. My cashed out an oct. 13. The value if the shares bad fallen to $82,276.92. I was charged a $4,113.84 penalty for redeeming. I received 578,163.08, do Vlf Muling my total toil is 1.836.92. During the nine months i held that investment i received dividend Check a Hallner s5.9i4j5, which i know i must report us income on my 1987 income lax return. But How much of my loss can i deduct in my return is the penalty i paid port or a deductible loss or do i have in Swallow it a report the entire Iii,836.92 by a capital loss on schedule d. Form 1040. What you Call a pen Alty technically termed a con Tingent deferred sales charge and in tact a rear end Load was part of your loss. You could use that capital toss to offset capital gains if you had any in 1987,. And thereby reduce your taxable income and the Lum Ber of dollars you pay the internal Revenue scr ice. Ii you had no capital gains you can use �3,000 or the capital loss to offset other 1937 unable in come and carry the rest of the loss Forward and use it to offset future capital pins or 13.000 of other in come per year. Q. Can you explain lilt Contin gency let that was in lulled from the amount a re cited Hen we re deemed our Mutual fund investment the fee amounted to 4 percent of my investment. A. Thai fee was a contingent deferred sales charge. Like some other Mutual funds the one in which you invested charges 5 percent if shares Are redeemed within a year after being purchased 4 percent the Sec Ond year. 3 percent the third and so on Down until thai rear end Load Dis appears. Arrangements on such fees vary greatly among different funds. In general however those tech go to the company that manages the Mutual fund and that management company us the Money to pay Bro kers who sell the fund s shares. Market stages Broad Advance new York