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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: David R. Parker who wrote (334)	6/16/1998 3:04:00 PM
From: Colin Cody	Read Replies (2) \| Respond to of 1383

David, this method is NOT a correct way to avoid loss NON-recognition under the wash sale rules: trade away to your heart's desire and disregard any wash sale rules....but maintain a list of all stocks with a loss that were traded within 30 days (before or after) of your loss sale. Then, just don't trade those stocks in any way for at least 30 days before the end of the year. Presto! That 30 day moratorium resolves any and all wash sale conflicts. . To have the "30 moratorium" work you must not purchase the same security in that period (61 days). Whether you "trade" the same stock in the month of December has no direct bearing on avoiding the wash sales rules. . As a matter of fact, if on November 30th you ARE covered by a wash sale, then NOT selling the stock in December would ASSURE that you are covered by the wash sale rule for that year's taxes!!! To AVOID it you'd need to actually SELL the stock in December. . Colin