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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Colin Cody who wrote (1963)	3/7/1999 2:16:00 PM
From: Stu E.	Read Replies (1) \| Respond to of 5810

Colin, please indulge me and take me back to basics on the wash sale rule. Say I buy 100 shares of XYZ on 1/1/98 for $10/share and then buy 200 shares of XYZ on 1/3/98 for $8/share. I then sell the 300 shares of XYZ for $4/share on 5/8/98. Can I deduct the loss on the 1/3/98 purchase or does the wash sale apply?

To: Colin Cody who wrote (1963)	3/8/1999 10:44:00 AM
From: David R. Colby	Read Replies (1) \| Respond to of 5810

I never argue with my CPA or tax attorney when it comes to code interpretation. I think my point, though, was that we have created a complexity (the tax system) that is difficult to comply with, and must be - if the IRS would admit it - even more difficult to administer. As far as shifting taxes or tax relief on a flat tax system we have seen views from across the political spectrum on - from the Jerry Browns to the Forbeses, they all have them. If we simply look at the increase in hours required to file (time billed for tax firms) we can see how complicated the system has become. Take a look at the amount of administrative law or time the tax cases take on our court dockets. This is a simple, workable system? I am not interested in closing loop holes on waitresses' tips or bring marijuana into the tax system. I am interested in a system that one can participate in without feeling like a potential criminal because I fear missing something or misinterpreting items the IRS hasn't even court tested. I am saying the tax system could be a lot simpler. Simpler without having worrying about what income class should buy Clinton a new tank, or some Senator writing a tax shelter for the Gray Panthers. We have to realize it isn't the IRS that writes the code - that's the politicans - it only enforces it. dave colby