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

To: Kaye Thomas who wrote (548)	11/9/1998 10:46:00 PM
From: Tom Hua	Read Replies (2) \| Respond to of 1383

Kaye, nice site, informative materials! On the subject of wash sale, you wrote (from your web site): "When you make a wash sale, the disallowed loss gets added to the basis of the replacement stock. If you sell the replacement stock within the same year — and wait at least 31 days before buying that stock again — you wipe the slate clean. You can report all your gains and losses as if the wash sale rule didn't apply, because the only effect of the rule in this case is to move your loss from one transaction to another within the same year." That's exactly what I have in mind. But on Schedule D I still have to adjust the cost basis for trades that were "temporarily" affected by the wash sale rule, report the wash sale transactions. That's still a nightmare. Do you have any suggestions to make the bookkeeping and reporting more efficient? Thanks. Regards, Tom