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Strategies & Market Trends : Income Taxes and Record Keeping ( tax )
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To: diana g who wrote (3586)2/4/2001 1:11:28 AM
From: PuddleGlum  Read Replies (2) of 5810
 
I've scanned recent messages on this board but haven't found anything to answer a burning question. I've heard a number of people say that I've got a tax nightmare because I did the following:

I exercised an ISO when the market price was $200. I paid under $7 per share. A few months later the stock was at $61, so I figured that there was no reason to subject myself to AMT on $193 per share if I could pay ordinary income tax on $54 per share, so I sold the stock, booked the profit, and promptly bought the stock back at $61. I've heard that this is considered a wash sale, in spite of the fact that I sold the stock at a profit. According to what I've read, the AMT is nullified if you sell the stock in the same year that you exercised it, and a wash sale is specific to securities sold at a loss.

Can anyone shed light on this? And if it is a wash sale, how does one record this nasty and tricky little detail in TurboTax?

Thanks,

pg
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