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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: AmericanVoter who wrote (6223)	4/9/2000 3:06:00 PM
From: rkral	Read Replies (1) \| Respond to of 8096

Amein, Your Bear Stearns person was correct IMO about the wash sale in the LU trades you cite. From IRS Pub 550, page 51: "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).... 2).... 3)Acquire a contract or option to buy substantially identical stock or securities." This is unambiguous. It does not however say 'option to buy or sell', so it is very probable IMO that one could buy a put within 30 days without triggering the wash sale rule. Regards, Ron

To: AmericanVoter who wrote (6223)	4/9/2000 3:12:00 PM
From: edamo	Read Replies (1) \| Respond to of 8096

amein.... the brokerage firm is not the best to rely on for tax consequences.... go through the current tax code, there is no clear ruling on options, if there were, then option transactions would be reportable on a 1099 from the brokerage. suggest you ask the brokerage who determined your transaction as why not 1099 reportable....also the final answer given by bear stearns "was to ask your accountant as they do not give tax advice"......but yet they gave you tax advice..... what am i missing.... also, buying/selling prior to establishing the loss is also considered a wash sale with common stock, as i believe the ruling is 30 days before and after the transaction....this precludes you from buying the identical position before selling the original position at a loss.... my comments apply only to options....particularly on the sell side....the question is "if i sell a put, and the assignment is thirty days after i sell the common at a loss.....is it a wash sale"......... the seller of the put or call, does not have the power to conclude the transaction at will.....the buyer does...