Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: Colin Cody who wrote (1355)	6/1/2001 9:18:23 PM
From: Investor2	Respond to of 1383

Thanks. Someone from another thread showed me this one, too. house.gov Best wishes, I2

To: Colin Cody who wrote (1355)	3/26/2002 12:52:48 PM
From: Raymond Duray	Respond to of 1383

I.R.S. Says Offshore Tax Evasion Is Widespread nytimes.com [[Do We All Aspire to be Tax Cheats? ]] I.R.S. Says Offshore Tax Evasion Is Widespread By DAVID CAY JOHNSTON he I.R.S. said yesterday that Americans in far greater numbers than it had once thought were evading taxes by secretly depositing money in tax havens like the Cayman Islands and withdrawing it using American Express (news/quote), MasterCard and Visa cards. The I.R.S. said its estimate that one million to two million Americans might be using such accounts was based on records that it had obtained by summons from MasterCard of 230,000 bank accounts in three tax-haven countries. A prominent criminal tax lawyer, Elliott H. Kajan of Beverly Hills, Calif., said, however, that the estimate was so out of proportion that he doubted it would hold up. But the Internal Revenue Service said that from records of purchases, it had already identified hundreds of income tax cheats, including executives of publicly traded companies, business owners, doctors, lawyers and investment professionals. These people — most believed to have incomes that would put them among the top 1 percent of taxpayers — "are using offshore cards to pay for living expenses," the I.R.S. said, from groceries to cars to college tuition for their children. Offshore accounts would be of little use to people whose wages are reported to the I.R.S. by their employers. <Continues.....>

To: Colin Cody who wrote (1355)	12/22/2002 3:50:39 PM
From: kendall harmon	Respond to of 1383

Here is a typical and terrible explanation of the wash sale rule from Andrew Leckey : A. If you want to get out of poor-performing stocks or mutual funds, it's important to be able to take a capital loss for the sale on your income tax return. The wash sale rule could trip you up. A wash sale is when you sell a security at a loss, and--within 30 calendar days before or after that sale--you buy a substantially identical security. Substantially identical includes any stock issues of the same company. Wash sales taking place within 30 days of the underlying purchase do not qualify as tax losses under IRS rules. "If you buy the stock back sooner than 30 days, you're in the same position as if you'd never sold it," said John Dyer, CPA and partner in Peter Shannon & Co., Hinsdale. "You can't take the loss." To avoid wash sales, wait 31 days before buying more stock. Or, be sure any securities bought after selling it are not substantially identical. You could buy a stock in a different firm in the same industry or a mutual fund with similar goals from a different investment company. chicagotribune.com Note especially: <<But there's still one way to claim a loss if you buy back a security before the 30-day holding period is up: You can add the loss to the basis of the repurchased security. Let's say you buy a share at $10, sell it at $8, and buy it back within 30 days at $9. You can add the original $2 loss to your new cost basis, which is now $11. If the stock rises and then you sell, let's say at $12, your taxable gain is only $1. >> I apologize for any repetition here, but I keep running into traders who have not fully digested all the intricacies of the wash sale rule. Message 14488034