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Technology Stocks : INTEL TRADER -- Ignore unavailable to you. Want to Upgrade?

To: MonsieurGonzo who wrote (1648)	12/23/1997 12:25:00 PM
From: tommy gunn	Read Replies (2) \| Respond to of 11051

Steve, Why would that apply to you living in Paris? Is that a SEC rule that applies no matter where one lives?

To: MonsieurGonzo who wrote (1648)	12/23/1997 8:39:00 PM
From: Berney	Respond to of 11051

Steve, see no problem selling INTC and buying the Index. Definitely different securities. I believe the Index is a security and the wash sale rules apply to transactions in that security. I'll fire up my research system and let you know before Fri am. Berney

To: MonsieurGonzo who wrote (1648)	12/26/1997 3:13:00 AM
From: Berney	Read Replies (3) \| Respond to of 11051

Steve, as promised to your interesting question. You would be amazed at the lack of IRS and judicial activity regarding the "wash sale" rules. This is interesting in and of itself. In any case, it appears that it was not until 1988 that Congress changed the law to have the wash sale rules apply to options. Must have been a field day for folks before then! Your question seems to be answered in IRS Pub 550. Therein, they state that the wash sale rules do not apply to 1) regulated futures contracts, 2) foreign currencies, 3) Non-Equity options, and 4) Dealer options. The focus here is a non-equity option, defined as including broad based stock index options (the example given refers to the High Tech Index). The non-equity option is controlled by the "market to market" provisions. As I understand it, the index options are treated as if they were sold on the last business day of the year, but, again, not subject to the wash sale rules. Further, I understand these transactions are reported on Form 6781 and you may want to secure a copy of the form and instructions. Hope this helps. Maybe some better expert can expand upon this! P.S. To Tommy, we are dealing with IRS issues and not SEC issues. To all, today is the last day for tax loss selling (Yippie!) in 1997. But, we still have to deal with the fools that don't know this. The weekly MACD on GE turned bearish for the first time in a while - my proxy for the Market. Not a good sign! The good news is that there will be a great buying opportunity shortly. Keep your gun powder dry! And finally, TO ALL FELLOW DUDES, I wish you and yours Health, Happiness, and Prosperity (after-taxes) in 1998!!! Merry Christmas!!! Peace on Earth! Berney