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Strategies & Market Trends : Ultra OTC Fund - UOPIX -- Ignore unavailable to you. Want to Upgrade?

To: OldAIMGuy who wrote (1119)	1/4/2001 6:22:57 PM
From: John	Read Replies (1) \| Respond to of 2063

Hi Tom, Thanks for responding. This is my second attempt to respond to you. SI lost my other post. Have you been fouling up their system again? :-) Regarding the tax problem and wash sale rule. I fully appreciate what you and Bernie are saying, however I wouldn't be too quick to discount the idea of selling UOPIX for a loss during a down year, and exchanging the money immediately into a Rydex fund with the same objective. The IRS code is written in simplicity, but I have spoken with several professional accountants to gain greater clarity. All of them told me that such a maneuver would not violate the wash sale law. This is because ProFunds and Rydex use different formulas and stock weightings for obtaining the 2x beta result, therefore very important and material differences exist between the two funds. I will try to find more concrete and verifiable details regarding this to post here, but you may wish the article at the link below. (This doesn't solidify my belief, but confirms the cloudiness of the issue.) I may write the IRS directly and ask for a ruling on this issue. Or maybe not! :-) Heh. thestreet.com Best Regards, John in Iceland Clear, 21°F