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To: heatseeker who wrote (12073)	12/29/1997 6:13:00 PM
From: Angela	Respond to of 25960

Sorry I don't know whether or not it applies to options. But any decent tax book should be able to tell you if you look under wash sale or stock options. I like the Ernst & Young tax book. Angela

To: heatseeker who wrote (12073)	12/29/1997 7:42:00 PM
From: Starlight	Respond to of 25960

>>Does this rule also apply to options?<< Yes - the rule says your loss deduction is barred if within 30 days of the sale you buy substantially identical stock or securities, or a put or call option on such securities. (This is from the J.K. Lasser tax guide.) Betty

To: heatseeker who wrote (12073)	12/30/1997 1:52:00 AM
From: ben luong	Read Replies (1) \| Respond to of 25960

Yes, in fact, if you buy any "equivalent" security, including stocks in the same industry group, warrants, options, convertible bonds, PERCs, or CAPs within 30 days of the sale, you are in violation of the wash sale rule. Examples: if you sell COMS and buy CSCO immediately, you're burned. The rule is quite loosely applied. I remembered reading about one big boy was defeated by IRS last year (after hiring a high-profile tax lawyer) and owed almost million in tax. (I think he is got other stuffs going on, too) But I think you can get away with it. Think about the possibility. You have to be randomly selected to be audited. The auditors have hundred of cases to process. He certainly won't look for equivalent positions if you made many transactions a year. Unless you are a big boy or you make it so obvious, or you had a history of deceiving IRS before.