| | | David -- If you sell shares at a profit (i.e., above the cost basis), then you can buy more shares at any time without triggering a wash sale. A wash sale occurs when you sell shares at a LOSS and then buy new shares less than 30 days after the sale. You would not be able to take a tax loss on shares sold at a loss if you bought new shares of the same stock within 30 days of the sale.
You raise another interesting question. If you sold your WDC shares now, that would, of course, generate some taxable income, albeit probably less taxable income for this year than if you waited for the share price to go up. If you bought more WDC shares, planning to sell them some time in the future, say, at least a year later, the cost basis for these shares would be higher than your current cost basis.
Before I take any drastic action on my WDC shares, I think I'll wait for next week's conference call in order to get a better idea of what I want to do for the long term.
Art |
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