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To: JGibbs who wrote (22349)	3/17/1998 10:42:00 PM
From: mozek	Respond to of 97611

I'm pretty sure that if you don't stay out of it for 30 days, you end up with a "wash". It isn't something you can use for tax loss, but it changes your cost basis by the delta between your sale and purchase. Mike

To: JGibbs who wrote (22349)	3/17/1998 10:54:00 PM
From: Spinn	Read Replies (2) \| Respond to of 97611

If you sell your cpq you can take the loss. However, you must wait a time period determined by the IRS before you can repurchase the stock and still take the loss. I believe the period is 30 days. Conclusion, if you sell you must wait 30 days before repurchasing and this new purchase date starts the clock on the 18 months.

To: JGibbs who wrote (22349)	3/17/1998 11:05:00 PM
From: Greg Jung	Read Replies (2) \| Respond to of 97611

(wash rule) You have to either be divested (of the amount you sell) or doubly invested for a period of 30 days in order to declare a loss in 1998. If you already have short-term gains for the year against which you can deduct, under the presumption that it stays low for a month you could sell, wait 30 days, then buy. Or at some point you buy an amount equal to what you would sell, hold the extra stock for 30 days, then sell the half you are thinking of selling now. Also, you can't get around it by holding cpq options. If you need to go on margin to do this, and you don't have the resources to stay long on the double, then your arm is halfway into the monkey trap - its like a "double or nothing" bet in the market. Greg

To: JGibbs who wrote (22349)	3/17/1998 11:51:00 PM
From: Pavel	Respond to of 97611

Wash Sale Summary: 1) you sell the stock now a) and the price goes down: aa) you can buy it back within 30 days and you cannot take a tax loss deduction - you however bought for less and therefore lowered your break even price = better than holding the stock, you lose the tax deduction $$$. ab) you buy it back after the 30 day period - you can take a tax break and lower your break even price. b) and the price goes up: ba) you can buy back within 30 days - you can add the loss from a wash sale and add it to the cost of the new stock to obtain the new price basis = non-event bb) you can buy back after the 30 day period - you can take a tax break, but you lose your position in the stock = you need to compare your tax break and the difference between your sale price and the current price in order to determine where you stand. Pavel