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To: Seldom_Blue who wrote (6350)	4/12/2000 12:04:00 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 8096

>> My understanding is that if you establish a position substantially similar to the one you are selling within 30 days, it is considered a wash sale. You cannot deduct the loss. Let me give a concrete example. If I were to close out a position on xyz at 50, a $10 loss, and then rebuy xyz at 45 within 30 days, I would not be able to claim the $10 loss, but would rather have to adjust my cost basis on the second purchase to 55. If I turned around in the same tax year and sold the new position at 45, I would be able to claim a $10 loss. Since I lost $10 on the first sale and broke even on the second, there is no difference in result provided both transactions were done in the same tax year. uf