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

To: Colin Cody who wrote (495)	9/17/1998 4:35:00 PM
From: Mark Z	Read Replies (3) \| Respond to of 1383

<<As an alternative you MIGHT be able to sell the option on the OPEN MARKET and have the IRA purchase the option on the OPEN MARKET.>> Can one purchase options in an IRA account? I thought that was verboten? John>> What's the problem with just selling the options and purchasing a similar quantity of shares, separately, in the IRA? If the option expires tomorrow, you lose a little but if there's still some time premium in it, you'll probably come out ahead.

To: Colin Cody who wrote (495)	9/17/1998 4:52:00 PM
From: mod	Read Replies (2) \| Respond to of 1383

<<I am of the opinion that a loss this way is subject to the Wash Sales rules, although there are many people who say as long as the retirement account is an IRA rather than a Pension Plan, that wash sales do not apply.>> What! You mean this is open to debate? I've always observed the wash sale rules regarding my taxable vs. IRA-SEP and Roth IRAs, even though it can be a pain sometimes. I'd be interested in what the reasoning is for not using the wash sale rules for IRAs. Dennis