Income Taxes and Record Keeping ( tax ) Message Board

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Strategies & Market Trends : Income Taxes and Record Keeping ( tax )

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To: Bob Miller who wrote (506)	1/27/1998 5:37:00 PM
From: Mitch Aunger	Read Replies (1) of 5810

Bob, Colin or anyone.... I've been trying to find some information in a hurry and can't seem to put my finger on it... I've read a bunch about 'wash' sales and every one of them seems to talk about selling something at a loss and then buying it back... What if I sell something at a gain and buy it right back? Do I have to pay the cap gains? or can I consider it a wash and hold on for a while longer? Ex: I've held 10,000 shares of x for 2 years. I want to 'day trade' but don't have any spare cash... so I come up with a scheme to sell 5,000 of x first thing in the morning to buy Y... then sell Y late in the day and buy back my original 5,000 of x (hopefully at a large gain on Y - which I'll happily pay taxes on!). My basis for x is 1.00 and it is currently 5.00. But I don't want to pay taxes on x this year cause I'm gonna hold it for a long time. Would that be a really stupid plan? Thanks so much for the help!!!!!!!!!!!!!!!!!!!!! Mitch

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