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To: 911Turbo who wrote (45345)	12/21/2000 7:36:56 PM
From: billwot	Respond to of 77400

Yes, you can sell for a tax loss in a taxable account and immediately replace the shares in a non-taxable account without jeapordizing the loss. I've been doing that for the last month. In a taxable account, you can also sell shares in ABC at a loss, sell XYZ for a profit, offset the XYZ gain with the ABC loss, and immediately repurchase XYZ at a new higher basis cost. There are no wash-sale rules surrounding tax-sheltered accounts (IRA) bill

To: 911Turbo who wrote (45345)	12/21/2000 8:18:07 PM
From: Ira Player	Read Replies (1) \| Respond to of 77400

Be careful...... thestreet.com thestreet.com

To: 911Turbo who wrote (45345)	12/21/2000 8:53:56 PM
From: Ira Player	Respond to of 77400

OT...A second response.... Given that I do not feel it is prudent to sell at a loss in a taxable account and buy within the time 31 day window within an IRA, I know somebody who did so several times.... When before and after hours trading was just starting, an investor buddy (email) told me he was doing the following: 1. In his IRA account, he would accumulate shares of a medium volume traded stock. 2. When done accumulating, he would offer on the after hours (he used Island) at a price that put him at the inside ask. This was as much as a few points above the close of the day. 3. From a taxable account that could preference Island, he would hit the ask and buy the shares. 4. When the market opened and the buyers returned, he'd sell the shares from the taxable account at a loss. The loss is a tax deduction this year. Most of the "loss" was actually transferring money into his IRA. An example from an E-mail (March 00) Accumulated 2000 shares SVGI at average cost of $25 Offered on Island at 27.5 after hours (close was ~$26) Hit ask from taxable account. Sold next day at 26.125. Results: $5000 gain in IRA ($2250 from the 'legitimate' trade) - 2 commissions $2750 deductible loss in taxable account + 2 commissions. He's in California marginal bracket 9.2% and in federal marginal bracket 39.6%, so had tax savings of 48.8% ($1342). At a cost of 4 commissions (2 deductible) and $1408 out of pocket, he has $2750 in his IRA to grow tax deferred until retirement. I BELIEVE THIS TO BE ILLEGAL, SINCE IT IS NOT A TRANSACTION BETWEN UNRELATED PARTIES. However, he did it several times........ Ira