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To: Ty who wrote (9044)	4/2/1998 8:49:00 PM
From: Bill Harmond	Read Replies (1) \| Respond to of 27307

I'm not a tax professional, but the wash sale rule doesn't affect the tax consequences of the first transaction. It just defers it and links it to the closing of the second transaction. Lets say you shorted 100 shares at 60 on 12/1/97, and covered at 70 on 12/30, then shorted 100 at 65 on 1/9/98, and covered at 80 on 3/6. Disregarding commissions your loss on the first transaction was $1,000. Loss on the second was $1,500. The IRS wouldn't let you take the $1,000 tax loss in 1997, but they would let you take the total $2,500 tax loss in 1998. I'm not a tax professional, but that's my understanding of the wash-sale rule.