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To: rudyprins who wrote (33492)	10/21/2000 8:04:37 PM
From: Uncle Frank	Read Replies (2) \| Respond to of 54805

>> Do you do this? I will add to core positions if I believe they have dipped to the lower end of their current range, but I do it to increase my position, not as an attempt to double up and then sell on a rise. Are you familiar with the tax restrictions on wash sales? That may come into play should you use the method you describe to reduce your cost basis. uf

To: rudyprins who wrote (33492)	10/23/2000 10:09:22 AM
From: StockHawk	Respond to of 54805

>>Do you do this?<< Hi, I just read your question, Frank's response cautioning you about wash sales and then the other posts about wash sale rules. However, that is not the problem to be concerned with here - at least if we take the scenario you presented. The problem you have is the IRS presumption of FIFO. Since your oldest lot cost $30 per share, and you hope to sell at $88 you would incur taxes. To avoid this presumption by the IRS you could try these methods (not offering tax advice here, check with your accountant) 1. Use different accounts for each purchase (the best way to do this), or 2. You have a broker who can specifically identify the lots for you and mark the lot on the sales ticket (most likely a full-service broker, not an on-line account), or 3. You take possession of the shares and sell the higher priced lot. StockHawk Oh, and yes, I do this.