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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Mark Ericson who wrote (9585)	2/20/1998 11:52:00 AM
From: Phuoc Le	Read Replies (2) \| Respond to of 14631

>>Doesn't the "wash-sale" rule disallow a loss if you purchase Call or Put options on a "substantially identical" stock or security within 30 days.<< Does the rule state that it's "Call or Put options on 'substantially identical' securities" or just "substantially identical securities?" If it's the latter, I don't believe it would be a wash sale to buy options to be exercised more than 30 days later. Options are different since they're not claims on assets like stocks are, but just the right. We had this discussion on the ASND board, and Gary Korn (another user and an attorney as well) & others agreed that it wouldn't be a wash sale. However, what Lou said about selling 1,000,000 shares of IFMX bought at 25 a year and a half ago to take the huge tax write-off is wrong. I believe for individuals, you can only write-off up to $3,000 and the balance can be carried into next year, up to $3,000 per year. I'm not sure how the wash rule and tax write-off apply to institutions like pension funds and mutual funds. Anyone care to clarify?