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

To: Bob Miller who wrote (486)	1/21/1998 5:49:00 AM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 5810

Robert..... do you work for the IRS.... i hope they agree with you that looking for unreported wash sales is not a worthy effort.... and a whole bunch of other stuff they do as well. <g> Joel

To: Bob Miller who wrote (486)	1/21/1998 4:58:00 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 5810

Many active traders focus on a few stocks and trade them again and again, generally trading the same numbers of shares. If one did go through and look at the details, for the most part trades that would in themselves be wash trades would legitimately be included in the basis for the stocks finally being sold at a profit. The few exceptions would be where a trader decides to give up on a particular stock, and the last trade or few trades are net losers that should be treated as a wash. When all is said and done, most if not all of the appropriate taxes would be paid if you just subtract the total buy costs from the total sales. I raised the question because I wondered if the IRS considered that an acceptable practice.