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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: SecularBull who wrote (33819)	1/17/2000 11:59:00 AM
From: Harry Sharp	Read Replies (2) \| Respond to of 70976

>>You are correct, the option holding period is added to the holding period for the stock.<< WRONG! (As Crammer would say) Once again: In determining the one year holding period for a LT capital gain in the United States the one year period begins when the option is exercised. If you hold a call option for six months and then exercise it and take the stock THATS when the holding period starts. You will have to own the stock for one year in addition to the six months you had the call option.

To: SecularBull who wrote (33819)	1/17/2000 12:55:00 PM
From: Ben Antanaitis	Read Replies (1) \| Respond to of 70976

LoD, Buying an option after selling a stock does not violate the wash rule WRONG! From IRS Pub550: irs.gov Wash Sales You cannot deduct losses from sales or trades of stock or securities in a wash sale. A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you: 1.Buy substantially identical stock or securities, 2.Acquire substantially identical stock or securities in a fully taxable trade, or 3.Acquire a contract or option to buy substantially identical stock or securities. If you sell stock and your spouse or a corporation you control buys substantially identical stock, you also have a wash sale. Special note: Watch out for that "before or after" time limit. Ben A.