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: RookieTrader who wrote (475)	8/27/1998 12:54:00 PM
From: Kaye Thomas	Respond to of 1383

I'm getting ready to spiff up my coverage of capital gains and losses, and will include full details on treatment of short sales at that time. Meanwhile, in response to your question about short sales and the wash sale rule, you have to look at them as a mirror image of long positions. If you have a loss on disposition of a long position and then decide to short the same stock, you haven't replaced the long position so the wash sale rule doesn't apply. But the wash sale rule applies if you have a loss on closing out a short position and re-establish that short position within the 61-day wash sale period. Kaye Thomas, author Fairmark Press Tax Guide for Investors fairmark.com