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Biotech / Medical : Sepracor-Looks very promising -- Ignore unavailable to you. Want to Upgrade?

To: BMcV who wrote (2300)	4/14/1999 10:31:00 AM
From: RCMac	Respond to of 10280

Bruce, >>When you sell the stock and buy LEAPS, does that count as a wash sale for tax purposes? Before I consider selling some shares to cover the cost of the LEAPS, I need to know if I can defer the gain..<< No, the "wash sale" rules you refer to apply only to losses -- you can't take a deduction for a loss in a stock if you buy the same stock within 30 days before or after the sale. Also, selling the stock and buying options on the same stock I believe wouldn't be covered by the wash sale rules even if you had a loss, but since you presumably have SEPR profits your accountant doesn't need to think about that question. So if you sell SEPR and buy the LEAPS, you will realize taxable gain which will need to be reported on your 1040. --RCM