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

To: Cisco who wrote (232)	12/1/1997 10:52:00 PM
From: Nittany Lion	Respond to of 5810

Cisco, I'll check at the office tomorrow and see if I can give you a specific reference on this. With the amounts you are talking about, I can appreciate your problem. Gary

To: Cisco who wrote (232)	12/3/1997 1:14:00 AM
From: Colin Cody	Read Replies (2) \| Respond to of 5810

This is no answer to the question. Not until someone takes it to Tax Court, IMO. . The issue is that related-party control entities taking the other side of potential "wash sale" trades cause the loss to be deferred. That's why SOME SAY your IRA, under your control, causes a wash sale to happen. . OTHER PEOPLE, like Tesser referenced here earlier, are likely looking at the EXAMPLES/RULES in the Official IR Regs which spell out some related party entities. Such as: a wholely owned CORPORATION, and a whole list of TRUSTS/Beneficiaries/Trustees. . Nowhere in that list are the words "Individual Retirement Account" found. . So SOME people say since IRA isn't specifically listed as being a related entity, that that means there's no wash sale. . Others say just look at the list as a GUIDE, and obviously IRAs are related if controlled by the taxpayer. . And still others are just repeating "what they heard someplace" (I don't know if Tesser falls in this case, but he does not justify his claim in his book to my knowledge) and still others may figure "let them try to catch me". . Honestly, the ODDS of getting caught using your IRA as the offset are pretty remote, IMO. As a result we have NO CASE LAW on the matter, no one's gotten caught and decided to take it to Tax Court yet... . Colin

To: Cisco who wrote (232)	12/5/1997 5:50:00 PM
From: Sonki	Respond to of 5810

cisco, i bot csco last april and sold long leap against the stock. wh ich will take my csco into a long terms 18 months period by the time i get called away. Action : covered call. Question: Lets say i got $15 (in 97) for a $90strike. I will get $90 in jan 99 when i get called away. Do I report $15 income in 97 and and capGains in 99? would it be considered a long term investment? or does my holding period stop for the time i am doing covered call? Please ask the expert in your house. thahx. p.s. i m in bay area, can you recommend me your cpa?