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Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: MichaelJ who wrote (18120)	12/29/1997 1:41:00 AM
From: R. Martenson	Read Replies (1) \| Respond to of 36349

Watch out for the Wash Sale rule. I believe if you dump your shares and buy them right back, the only thing you get is commission cost added to you basis cost for the stocks. If you trade the same equity within 30 days before or after a sale, I don't think the IRS will let you use the loss on the sale. Might check the IRS regs for Wash Sales. I am not an expert in this area, but I think it is of some concern.

To: MichaelJ who wrote (18120)	12/29/1997 7:59:00 AM
From: Ron Morse	Read Replies (2) \| Respond to of 36349

Michael: Wash Sale This is my understanding of a wash sale. The repurchase of a stock 30 days before or after the sale (at a loss) of same or like stock. Lets say you purchased 100 shares of Pair at 25 and sold it at 20. You have a 500 dollar loss. Now you repurchase it at 15 within the 30 day time limit. You cannot claim the loss on the original sale. You have to add the 500 dollar loss to the cost of the second purchase. This would give you a cost basis of 20 dollars. When you sell these shares you will realize the loss for the original purchase. I checked into this last year and got the same response from Motley fool and the tax advisors on AOL. Anyone else want to give this try? Ron