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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Char who wrote (13803)	11/9/1997 9:55:00 PM
From: Logain Ablar	Respond to of 50167

Dave: The loss sale rules only apply to transactions where you've realized a loss and repurchase the same security within 30 days (and thats within 30 days before or after you originally disposed of the security for a loss). To answer your question. No you can't end up with a negative cost basis for tax. [purchase @ $50 sell @ $35, $15 realized loss; repurchase 20 days later at price of $10 your basis would then be the $10 plus the realized loss of $15 bringing your basis up to $25. <Can a person actually end of with a negative cost basis due to the wash sale rules. Example: you buy 100 shares of stock at $5. You sell it at $12 1 week later. Two weeks after that it falls back to 5 and you buy it again. Is your cost basis now -$2.> In this example you sold for a gain and it doens't fall under the regulation. Tim