freeus, Here is the information I forwarded to Arthur about WASH SALES.
As DELLFAN correctly pointed out WASH SALES do apply to Traders in his reply # 129622. MY THOTS FOLLOW :
A person in a trading business should not concern themselves with decisions about whether or not a wash sale would apply. Especially at the beginning of the year and not until the end of the year (maybe not even then if the right situation occurs, a perfect example would be now and the last two or three weeks if we were in December) because a person could lose economically ($$$) big time. WASH SALES are just a TIMING thing and are wiped out with SUBSEQUENT GAINS or TIME. What I mean by TIME is when a person, in a trading business decides to sell the stock because they have now determined with sound and rational trading business decisions in their opinion that the stock is a dog and they do not want to trade it any longer or if they do it will be more than 30 days ( example would be CPQ in some peoples' opinion). Trading business decisions should not be made solely on tax considerations, if the tax consequences benefit you it makes the decision easier. EXCEPT when it comes to holding that stock an extra week or two in order to receive long term capital gain tax status and the stock is declining. A person using sound and rational trading business decisions should never make the decision based on obtaining a long term capital gain that in two or three weeks could cost them a lot more than the additional taxes would have. Traders should not let taxes be the primary consideration in making a Trading decision.
In your particular situation freeus,if after thoughtful study, research and opinions of others you trust, because you know they have done their homework, it is your decision that the stock you sold at a loss will come back, because it is in a temporary decline, YES even if it is less than 30 days then you should consider buying it back although from your posts margin is also something you have to give consideration. If you sell that stock sometime between now and the end of the year at a price that matches or exceeds your original cost plus the loss you had on the WASH SALE, the wash sale loss is eliminated. Then you can buy it back immediately and continue the trend up that you decided would happen based on your research and study as a "TRADER". Please also read DELLFAN reply # 129406 very carefully, I don't see anything their that even hints that to be a TRADER it has to be your primary source of income.
GW PLANNER ( a friend of Arthur Pritchard )
ps What does VVVBG mean? |
