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Strategies & Market Trends : Roth IRA ideas -- Ignore unavailable to you. Want to Upgrade?

To: Martin Wormser who wrote (348)	7/20/1999 6:24:00 PM
From: Gary	Respond to of 388

Hi Martin This is a capital transaction. The one year applies to gains as this is the time period where the transaction becomes long term and is taxed at a maximum rate of 20%. You don't lose the loss. It is just not deductible currently when you buy the same security back within 30 days (wash sale). The loss is added to the basis of the shares you own currently. You will have to sell the shares to realize the loss and not buy them back for a month. Conversley, you can buy additional shares a month before selling the shares you now hold. Capital losses are limited to a deduction in any year on a dollar for dollar basis and if there is an excess loss, $3,000 can be utilized against other income. If there is still an excess of losses, they are carried forward to the next year. Hope this helps, Gary