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To: James Burke who wrote (4144)	5/14/1998 11:42:00 AM
From: Daniel Goncharoff	Read Replies (1) \| Respond to of 12617

From the 1996 1040 Instructions: A wash sale occurs when you sell or otherwise dispose of stock or securities (including a contract or option to acquire or sell stock or securities) at a loss and, within 30 days before or after the sale or disposition, you directly or indirectly: 1. Buy substantially identical stock or securities; 2. Acquire substantially identical stock or securities in a fully taxable trade, or 3. Enter into a contract or option to acquire substantially identical stock or securities. You cannot deduct losses from wash sales unless the loss was incurred in the ordinary course of your business as a dealer in stock or securities. The basis of the substantially identical stock or securities you acquired ... is its cost increased by the disallowed loss... Report a wash sale transaction on line 1 or line 9 [Note: ST or LT capital gain]. Show the full amount of the loss in column (f) [Note: the 'loss' column]. On the next line, enter "Wash Sale" in column (a) and the amount of the loss not allowed in column (g) [Note: the 'Gain' column]. Hope this helps. DanG