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

To: Sonki who wrote (322)	12/26/1997 8:17:00 PM
From: RWalker	Read Replies (1) \| Respond to of 5810

Thank you for the suggestion. You are probably right. Consider the following: Case 1. Say a person buys stock xxx and sells the same at a loss after a few days. Assume that the person never had a position in the stock before or after this event. Then the loss does not come under the wash sale rule and can be written off under the $3000 loss limit. Case 2. Same as above except that the brokerage firm that transacted the purchase and sale of the stock split the order: Buy order for 1000 shares split as 300 at 10 a.m. and 700 at 10:15 a.m. After a week, sell order for 1000 shares split as 400 at 11:00 a.m. and 600 at 2 p.m. (Sale resulted in a loss) In this case, will the loss come under the wash sale rule preventing the person from writing it off? I think not. Comments welcome.