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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: No Mo Mo who wrote (24474)	12/12/2000 5:43:41 PM
From: Jim Willie CB	Read Replies (2) \| Respond to of 65232

on "Wash Rule" I know of some details the rule applies not just to the stock in question but to any other stock clearly in extremely similar business e.g. Gateway and Dell but this is certainly gray area with corporate broadening their lines of business, how could one call Compaq and HewlettPackard extremely similar? the SEC is wise to such games, but cannot patrol completely I believe the rule also applies to a stock and options against that stock but again gray area I think you could get away with it easily except for obviously selling XYZ then buying back XYZ / jim

To: No Mo Mo who wrote (24474)	12/12/2000 7:48:31 PM
From: andyama	Respond to of 65232

From the CCH Master Tax guide "The term stock or securities includes contracts or options to acquire or sell stock or securities" andy

To: No Mo Mo who wrote (24474)	12/12/2000 7:53:49 PM
From: andyama	Read Replies (1) \| Respond to of 65232

From the CCH Master Tax guide "The term stock or securities includes contracts or options to acquire or sell stock or securities" andy

To: No Mo Mo who wrote (24474)	12/13/2000 9:38:02 AM
From: edamo	Read Replies (1) \| Respond to of 65232

no mo mom..."wash rules" consult a cpa who is familiar with options transactions. the wash rule is very clear when it comes to long option positions, but quite cloudy with short options positions which are considered "economic obligations" basically the tax code states for the option seller: "the receipt of the premium for writing an option has no tax consequences to the writer until the option either lapses(expires), is exercised, or is offset in a closing transaction" (irc sec. 1234) remember option profit and tax losses are still on the honor system as 1099 are not required for these trades. keep perfect records as they are all you truly have to use as back up for your tax filing... good luck ed a.