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To: mph who wrote (9042)	6/18/1999 11:24:00 AM
From: Alski	Read Replies (2) \| Respond to of 14427

mph, Yes, your 1-5 loss offsets your 1-15 gain. The wash sale rule is an accounting trick that only applies if you still hold shares. IF you sell ALL shares there's nothing to worry about. If you sell part of your holdings at a loss within 30 days (either way) of buying the same stock, you can't take the loss on your taxes. Instead you add your loss to the basis cost of the shares you own. When you sell those last shares you realize less profit, by the amount of the disallowed loss. Using your example, if on 1-20-99 you sold ONLY the shares bought on 1-5-99 then you would have to apply the wash rule. You could not take your $1 loss but instead you would add that $1 to your basis of the shares bought on 1-15-99. Your 1-20-99 sale would be no-loss/no-gain, but the 1-15-99 shares you still hold would have a basis of $6 instead of $5. Hope that helped, Alski