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

To: Zack Zaccagnini who wrote (151)10/28/1997 6:13:00 PM
From: Gorak Shep  Read Replies (1) | Respond to of 5810
 
Zack, yes you can get back in the next day or the next minute after you have sold for a loss. But the IRS does take notice of such "quirky re-entry" and they call it a wash sale. Consult an appropriate advisor or read the IRS doc to understand the full implications of a wash sale. Basically it means you can't take the loss directly on your Sched D but rather you have to add the loss amount to the basis (ie the cost of) your new position for tax purposes. It defers the loss into the next position but you do eventually realize it.



To: Zack Zaccagnini who wrote (151)10/28/1997 8:39:00 PM
From: Colin Cody  Respond to of 5810
 
Zack, What you described is EXACTLY what the others were discussing earlier on in this thread.
.
The I.R.S. wont get excited about what you did. You just have to remember to report the sale as a WASH SALE and you need to NOT take the loss on your tax return until you (at least) sell the shares you bought today.
.
Colin


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