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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Kaye Thomas who wrote (2294)	9/15/1999 2:42:00 PM
From: J R KARY	Read Replies (2) \| Respond to of 5810

Kaye would this "creative" tax loss sale and re-buy clear IRS's muster I want to take some stock losses against some profits . Say one owns (150,000 shrs) at a loss of a thinly traded company (5k to 10k shrs/day) . Selling to take a loss could drive the price down and I probably would buy the shares back after the 31 day wash sale period which could drive the price back up . I would like to sell the shares "at arm's length" as a block then buy them back . As part of the sale I would buy a "option" to buy them at the price I sold them . I would do all the loan transactions in the same bank. Questions - could I loan the money to the buyer for the sale and hold the stock as loan collateral ? Another "questionable" ingredient is that I would buy the stock back via the option so it is not really a "option" as I will exercise it . To me the effect of this transfer (sale & re-buy) is the same as if I did it in the open market . Your thoughts please . Thanks in advance, Jim K.