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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: The Street who wrote (27325)	12/13/1998 7:23:00 PM
From: GT	Read Replies (1) \| Respond to of 119973

You can ALWAYS write off the loss even if you buy it right back. The question is in which tax year can you take the loss. As I understand it - you NEVER loose your ability to write off a loss. If you don't buy the same stock back within 31 days, then you can take the loss that calendar year. If you do buy it back in less than 31 days - and then re-sell that same year you still take the net loss (if any up to $3000.) this year - but only if you don't buy it back again for another 31 days. The wash sale rule was created to prevent people from selling a stock for a loss on say Dec. 28th, and then buying the position back the first day of the new year thereby getting a free tax loss deduction. Everyone who lost on ASTM for example, could buy back tomorrow, sell on Friday and subtract the first loss against any gain on the second purchase. But in order for all this to go on 1998 tax's, you could not then buy ASTM back a third time UNTIL 31 DAYS AFTER YOU SELL THE SECOND POSITION. I am not a tax expert by any means - so find an expert and have all this explained in more detail. Gorcon