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Strategies & Market Trends : Active Internet Traders - tax questions & answers
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To: Colin Cody who wrote (13)2/6/1999 11:17:00 PM
From: Double Dipper  Read Replies (2) of 31
 
I have a question regarding the Wash Rule and am hoping someone else
has run into this one. I am an active trader. Lets say I buy 15K of
stock in three buys as follows. Hypothetical.

Buy
1/10 5k stock XYZ
1/12 5k "
1/13 5k "

On 1/15 the stock tanks and I dump all of them but in three transactions 5k at a time each at a loss, commission savings doing it this way.

Since I am buying and dumping in increments of 5k to save on brokerage volume limits, I am not sure if only the first transaction can be claimed at a loss and the second two are Washes or not. They are sold all together on the same date one following the other but as separate transactions to save commissions.

Anyone with an opinion on this I'd appreciate it. I tried asking the IRS but got different opinions. Since the date is the same on the sells one rep told me I didn't have to eat the second and third sales as washes. Another rep told me I did.

Any thoughts?

Thanks,

Kevin
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