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.

Non-Tech : Tyco International Limited (TYC) -- Ignore unavailable to you. Want to Upgrade?

To: Richard James who wrote (787)	12/3/1999 1:54:00 PM
From: Bosco	Respond to of 3770

<o.t> Hi Richard, I am not an accountant, but I think washsale is days specific and not date specific. Sure one could take a loss for 1999, but the sale of subsequent position [let's say sometimes in 2000] is likely considered a washsale and subject to specialized tax treatment. That's why institutions used to short in the box [or "short against the block,"] before the tax laws gone into effects last year [?] best, Bosco

To: Richard James who wrote (787)	12/3/1999 2:48:00 PM
From: BI*RI	Respond to of 3770

I see three options for funds (and funds are what's moving this, not you or me); 1) Fund can sell anytime through 12/31/1999 to claim a tax loss. BUT, Capital Gains distributions have already occurred by then for most of them, so what's the point? 2) If they wanted a tax loss, yet want it showing in the portfolio for window dressing, then they would have to sell by 12/1 to buy back by 12/31 (30 day wash rule) 3) They want tax loss for '99 but returns from anticipated rebound in '00: They sell anytime up until 12/31 and re-buy 30 days+ into '00. Of course all this would only apply to funds that are concerned about tax efficiency.