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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: snerd who wrote (7731)	2/4/1999 9:14:00 PM
From: MMK	Read Replies (1) \| Respond to of 56535

Snerd: I am not possitive, but my guess would be the first is the "wash" because you can't claim a loss on that one if same stock rebought in 60 days. It wouldn't then matter if you held it the second time for more thatn 30 days. You caould sell it and take the gain. IMO MMK

To: snerd who wrote (7731)	2/4/1999 9:33:00 PM
From: Jon K.	Read Replies (2) \| Respond to of 56535

O/T - wash sales. Snerd, you have to consider 'materiality' factor in wash sales. If the loss amount is not that significant, I would not bother with the wash sales rule. But this is how it works: Example #1: Larry Laundry buys 500 shares of ABC Corp. for $10,000 and sells them on June 5 for $3,000. On June 30, he buys 500 shares of ABC again for $3,200. Since the stock was "bought back" within 30 days of sale, the wash sale rules apply. Larry can't claim his $7,000 loss. Instead, he must adjust his basis in the repurchased shares. His basis in his "new" 500 shares is $10,200: the actual cost plus the $7,000 disallowed loss. fool.com invest-faq.com >>I'm doing my tax return, and it looks like I need to list every trade.<< We trade a lot, and it sure is a pain in the *ss to list all buy and sell of each transaction. For me, this is how I will file. I will just print out my transaction history from Datek & Charles Schwab, and ATTACH this to my tax return.(IRS can see all the transaction details) And on tax return, I will just write gross sales and cost amount. I sure ain't gonna write all my trading transactions over 200 of them. Jon PS - Oooops, Tony already posted this with exact same reference <g>

To: snerd who wrote (7731)	2/4/1999 9:34:00 PM
From: Trader J	Read Replies (1) \| Respond to of 56535

Snerd: Yes, the first trade is the wash and the cost basis is carried forward. However, on my taxes, I don't even bother with the wash sale rule unless it carries over into the next tax year, in this case 99. If they audit me, I will just tell them....that the trades were settled in 1998 and it all comes out in the "wash". I only have 3 or 4 of them and it doesn't effect your return as long as you don't sell for a loss in Dec. and buy back within 30 days in Jan. TJ