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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Simba who wrote (69482)	10/23/1999 9:05:00 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 132070

Simba - (I have a tax question. Can someone tell me how a wash sale applies. Suppose I sell a stock for a loss and buy back within the wash sale time preiod and then sell the stock again by the end of the tax year, can I take a loss on the first sale or does the wash rule still apply ?) A wash sale doesn't reduce your available tax losses, but it can force their realization to be delayed. Your losses on the first sale will be recovered by adding to the cost basis of second sale. If all transactions occur in a given tax year, all positions are closed, and no wash sale period that straddles the year end is violated, the wash sale has no net effect at all. Consult a tax professional if your situation warrants. Regards, Don