Anthony @ Equity Investigations, Dear Anthony, Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Peter V who wrote (35402)	5/8/1999 10:01:00 PM
From: Sword	Read Replies (1) of 122087

<OT-Wash Sales> you know the wash sale rule, if you sell a long position and then buy it back within 30 days, the IRS treats it like if never occurred, and you don't get to take the tax loss (assuming there is a loss). Incorrect. See Message 8984265 for an explanation. In summary, their purpose is to prevent claiming intermediate capital losses for positions that you intend to keep from one reporting year to the next. The IRS doesn't want you to report the loss until you really are intent on closing it out. They define this period of definition as 30 days before and 30 days after the trade. But if I trade IBM 1500 times in and out during the year (it's a hypothetical example, work with me) and close it out for 30 days sometime before Jan 31st of '00, I don't even bother reporting the wash sales for '99. There is no material effect on the capital loss that you report on your taxes in '99. And wash sales only apply to capital losses. -Sword

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next