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

To: Robert A. Green, CPA who wrote (339)	6/17/1998 9:30:00 AM
From: Susan Saline	Respond to of 1383

good morning Robert >>>>>There is some confusion on the wash sale rule for traders and it is clearly explained in our TRADER TAX RULES & TAX RETURN REPORTING GUIDE. first off, I would like to say your writing from the report excerpts is not in English, it's Greek to me <ggg> I have been following this thread since it's inception. The wash rule is open to such wide and differing discussion of use and is not ever clearly defined. If possible please provide a few examples of what a wash sale is and is not. This for someone who does not wish to claim trader status. Many trade daily, weekly, positions of the same stocks, some days for gains some days for losses. What affect, if any, do the losses and gains on one stock, played within a short time period ... days/weeks ... have on a tax return? For instance I play TLK hold a few days take a gain buy back a few days later, sell quickly for a loss etc. over and over again. Thanks for any clear light you can shed on this for me Sue

To: Robert A. Green, CPA who wrote (339)	6/17/1998 10:07:00 AM
From: Colin Cody	Read Replies (2) \| Respond to of 1383

Thank you for clarifying that Traders do in fact follow the wash sales rules, same as Investors. Per CCH - "Traders are subject to limitation rules for short sales and wash sales. Although a trader does not maintain an inventory, he is subject to identification rules to determine a basis for the securities sold." . There seems to be some contradictory tax research on the wash sale rule. . There is nothing contradictory. The sources you posted were clear. Other than a newspaper article in "Barrons", which is not a credible citation for tax research. . CC