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Microcap & Penny Stocks : MIDL .... A Real Sleeper -- Ignore unavailable to you. Want to Upgrade?

To: E Richter who wrote (4729)	11/21/1998 12:11:00 PM
From: Binder	Read Replies (1) \| Respond to of 7039

Hey now that sounds like a good idea. I also heard that a letter from a broker stating that it is not tradeable can also work in allowing a total loss write-off, but I would think that if it does start trading again, it would leave me with a cost basis of -0-, which is not good either. Unfortunately, I convinced my mom to buy some of this too, and she is sitting on a big stack of nada too. Maybe we'll try that. Thanks, ER, for the idea! :-) Binder

To: E Richter who wrote (4729)	11/22/1998 12:25:00 AM
From: Kurt N	Read Replies (1) \| Respond to of 7039

Noticed your comment about selling and then subsequently buying. When selling and buying the SAME security, you need to be aware of the 30 day wash sale rule. MIDLP, MIDL, and MIDLW are considered different securities by the SAME company. You probably want to ask/double-check with your accountant about this. In a nut-shell if you sell a stock (at a loss) and you buy that same security within 30 days you cannot take the loss, instead your basis price is adjusted. Ex1: (loss on first sell not allowed) Buy 1000 shares WXYZ 1/1/98 @ $14/share Sell 1000 shares WXYZ 11/20/98 @ $4/share Buy 1000 shares WXYZ 11/30/98 @ $2/share [wash sale, basis = 14-4+2 = $12/share] Sell 1000 shares WXYZ 3/1/99 @ $5/share [1000(12-5) = $7,000 loss] Ex2: (loss on first sell allowed) Buy 1000 shares WXYZ 1/1/98 @ $14/share Sell 1000 shares WXYZ 11/20/98 @ $4/share [1000(14-4) = $10,000 loss] Buy 1000 shares WXYZ 12/21/98 @ $2/share Sell 1000 shares WXYZ 3/1/99 @ $5/share [1000*(5-2) = $3,000 gain] [$7,000 net loss] Kurt