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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: Trader J who wrote (63)	11/2/1998 11:10:00 AM
From: wisc	Read Replies (1) \| Respond to of 56535

Did you mean 30 days not 300 days? wisc

To: Trader J who wrote (63)	11/2/1998 9:39:00 PM
From: kendall harmon	Read Replies (1) \| Respond to of 56535

Just so that we are clear on the wash sale rule, this is correct that a wash sale cannot be counted if another transaction occurs within 30 days before or after. Both buy-buy sell and buy-sell-buy are types of rhythms which are effected. HOWEVER, the IRS does allow the wash sale loss to be added on the basis of the newly purchased stock. Thus the stock wash loss does not disappear but can still be taken advantage of. this is very important for active traders to know. if you buy 100 ibm at 130 on sept 9 and then buy 100 ibm at 136 on september 23 but then sell 100 ibm at 134 on october 1st this is a wash sale the 200 wash loss on this sale could then be added to any further ibm purchase provided the next ibm transaction is itself not a wash sale. Hence if you bought 100 ibm at 142 on november 2 and sold at 146 on november 13, the profit on this next ibm transaction would only be 200 dollars (comission eliminated for this illustration)