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Non-Tech : Paired Trades and Hedging Strategies -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (76)	1/14/2005 8:45:56 PM
From: Sam Citron	Respond to of 136

Liz Ann Sonders, Chief Investment Officer at Schwab is now on a tax panel to recommend changes to simplify the tax code. 216.239.57.104 Sorry I don't have her e-mail address. Sam

To: TimF who wrote (76)	1/14/2005 11:47:47 PM
From: Ira Player	Read Replies (1) \| Respond to of 136

The wash sale rule was introduced to stop investors from selling loosing positions in order to deduct the loss and then immediately buy replacement shares to maintain the position. There are many places in the tax code where the IRS is a diode...gains are always now, but losses may be deferred. Limiting the deduction of capital losses against earned income is one case that is extremely unfair, in my opinion. Originally aimed at the high income abusers, the limit now does not allow many in the middle class to recover their investment capital. I have spoken to several people that paid significant amounts in taxes on stock market gains during the 90's only to lose much of this capital during the last few years. Unable to deduct these losses against earned income and with little capital to invest relative to the loss carry forwards, some will not recover them all in the next decade. Ira