Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Roebear who wrote (55054)	11/19/1999 11:57:00 AM
From: SargeK	Read Replies (2) \| Respond to of 95453

Wash Sales Revisited .. Tax -Selling of Beaten Down Stocks nearing end for 1999 J.K. Lasser's “Your Income Tax”: “The objective of the wash-sale rule is to disallow a loss deduction where you recover your market position in a security within a short period of time after the sale. Under the wash-sale rule, your loss deduction is barred if within 30 days of the sale you buy substantially identical stock or securities, or a “put” or “call” option on such securities. The wash-sale period is 61 days –running from 30 days before to 30 days after the date of sale. The end of a taxable year during this 61-day period does not affect the wash-sale rule. The loss is still denied. If you sell at a loss and your spouse buys substantially identical stock within this period, the loss is also barred. The wash-sale rule does not apply to gains. It also does not apply to acquisitions, by gift, inheritance, or tax-free exchange. The wash-sale rule applies to investors and traders. It does not apply to dealers.” My interpretation of this rule is that Nov 30th marks the last day of selling an issue ,this year, for those wishing to take advantage of the rule for a 1999 tax deduction and regain position in a security before the end of the year. FWIW SargeK Because of the rule, I think DEMAND for the beaten down issues will begin to generally pick up on December 1st and then accelerate during the remainder of the year. This is expected ABSENT other price altering events during the period. Again, FWIW. That said, there are only a few trading days left for BUYERs to take advantage of tax-motivated selling of such issues as UFAB, GIFI, FGH, etc.......