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

To: Kaye Thomas who wrote (512)	10/21/1998 5:11:00 PM
From: softcash	Read Replies (1) \| Respond to of 1383

Here are 2 more complicated wash sale examples, do you know how? Example 1 ========= Buy 3000 stock x at 10 May 1 Sell 1000 stock x at 8 May 15 Sell 2000 stock x at 11 May 31 What happens with the trade that was made on May 15th? Can these losses be applied to the gains made from the May 31st sale? Is this really a net gain/loss of $0 Example 2 ========= Buy 3000 stock y at 10 June 1 Sell 1000 stock y at 12 June 15 sell 2000 stock y at 9 June 30 Can the gains made from June 15 sale be applied to the transaction on June 30th? Is this really a net gain/loss of 0? Notice in both of these situations, one is left with the same about of cash, except for commissions. For this purpose, lets assume commissions are free - 0. Thanx in advance!!

To: Kaye Thomas who wrote (512)	10/24/1998 2:58:00 PM
From: softcash	Read Replies (1) \| Respond to of 1383

Is October really a tax selling month? For most the tax year runs from Jan to Dec. It doesn't make sense to sell in early to mid October when you have losses. Historically October is a bad time for stocks. But if you have noticed, stocks rebound significantly from October and are much higher by December. December is the tax loss month, which sets up the infamous January effect. BTW/ October is NOT at the beginning of a quarterly boundary! Investment firms if they were going to sell for tax losses would do it on a quarterly basis. If their first quarter BEGINS on October, then most likely they would not sell in October. If their last quarter of the year is September, then most likely they WOULD sell in September. But if their last quarter is December, then they would probably sell their losers in December. In otherwords, it seems weird that a great many of institutions would have their end of the tax year as October 31. October 31 is NOT a quarterly boundary. March, June, September, and December are quarterly boundaries!