Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: WallStBum who wrote (381)	6/28/1998 10:27:00 AM
From: Turboe	Read Replies (1) \| Respond to of 1383

I thought the wash rule was no loss AT ALL on a stock if you re-buy in less than 30/31 days (IRS says a month-- 31 to be safe!)-- THIS IS WHAT 4 CPA's HAVE TOLD ME!!! PERIOD!!! I AM PRETTY SURE ON THIS!!!! Secondly-- I know this for sure-- ALL your losses (not 30 day wash!)can be claimed against your gains-- the $3,000 limit is what you can deduct on losses that are greater than your gains-- i.e. (These have to be in the same "basket" (Long vs Short term gains)-- or you can deduct Long-Term gains against Short-Term but not vice versa...) $200,000 in gains $250,000 in losses <$50,000> net loss So you can deduct $3,000 of that $50,000 loss in that year. The remaining $47,000 can be deducted (assuming no more gains-- quit trading <g>) at $3,000 per year-- YOU DO NOT LOSE THEM-- THEY ARE DEFERRED!

To: WallStBum who wrote (381)	6/28/1998 11:48:00 AM
From: Colin Cody	Read Replies (3) \| Respond to of 1383

WSB, Yes CAPITAL losses are maxed at $3000 but a Trader, AFTER CAREFUL CONSIDERATION, may elect under IRC Sec 475 to have them treated as possibly "ordinary" losses.. . The reason I say POSSIBLY, is that Congress did not think through the ramifications of this before passing the massive 1997 Tax Relief Act. I have spoken to the actual drafter of this Code section and we discussed the ambiguity of the way such gains or losses would be actually put on form 1040. Hopefully the Tax Corrections Bill passed last week will address the items I brought up about Sec 475. . Colin