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

To: kendall harmon who wrote (547)	11/9/1998 7:58:00 AM
From: Kaye Thomas	Read Replies (2) \| Respond to of 1383

A loss that is disallowed by reason of the wash sale rule is added to the basis of the replacement stock. This added basis is treated the same as if you had paid an additional amount for the stock. Therefore, it would carry over to new stock received in place of the wash sale replacement stock in a merger, and would also be available as a deduction in connection with the subsequent worthlessness of the stock. I've just published expanded materials concerning wash sales on my web site. An index to the new materials appears at: fairmark.com Kaye Thomas, author Fairmark Press Tax Guide for Investors fairmark.com