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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: PuddleGlum who wrote (3632)	2/4/2001 1:45:21 PM
From: deeno	Respond to of 5810

I do not know all your answers, but I believe there are no wash sale rules for gains. (ie. you can sell and byuy again without regard to the 30 days and take the gain for tax purposes)

To: PuddleGlum who wrote (3632)	2/5/2001 8:01:31 AM
From: Maywood	Read Replies (2) \| Respond to of 5810

Normally there is no wash sale when you have a gain. However, there is an obscure rule that we've been calling the "ISO wash sale" rule on the www.fairmark.com message board where it has been discussed at length. Basically, what it means is that, if you purchase replacement shares, you can't take the favorable treatment where your ordinary income is limited by the amount of your gain. Instead you have ordinary income on the FMV on day of exercise. Then the extra loss (FMV on day of exercise - sales prices) gets added to the basis of the replacement shares. For all of the gory technical details, see: forc.fairmark.com As far as how to report in TurboTax, I am in the process of doing my taxes right now and I also have this issue. I believe I will have to override some fields to get it to work properly ... TurboTax won't be able to handle it cleanly.