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

To: Ira Player who wrote (78)	1/15/2005 12:18:42 AM
From: TimF	Read Replies (2) \| 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. I understand the reason. I just don't agree with it. That position closed at a loss, and a new one was started. The basis for the new position will be at a lower cost so when taxes are eventually paid on it they potentially could be paid on a higher profit. Good point about the limited the capital losses against earned income. Tim