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

To: Colin Cody who wrote (606)	12/8/1998 9:17:00 AM
From: getgo234	Respond to of 1383

I have written covered calls on Ascend Communications that expire in December of 1998. The stock price is now well above the strike price on the calls. Can I roll the covered calls out to January whereby I would be reporting a loss in 1998 on the purchase of the December calls ? Will the IRS conclude that I am talking a tax loss for 98 and deferring the gains to 1999 and therefore this is not allowed ? Does this transaction fall under the 31 day wash rule ? Thank you to everyone for your comments.

To: Colin Cody who wrote (606)	12/10/1998 6:34:00 PM
From: Pices	Read Replies (2) \| Respond to of 1383

Colin - I have a question. I have a stock that I have held for more than one year and is a long term gain. Recently, I added to my position with new money but now find that I would rather have the new money back and keep the "old" money intact and NOT take a long-term capital gain but just let it continue to "ride." My question is, can I sell the recently acquired stock (at a break even) and declare it as such? In other words, must I use the rule "first in, first out" or can I chose to say that the last money I put in was short term and base (no) gains based on that, leaving my original purchase of a year ago intact? Thanks for your help. Hope I was clear. Pices