Tad Borek wrote:

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Indeed. I use this to stay exposed to a losing stock (assuming I want
to stay exposed) by buying more 31 days before the last trading day of
the year, and then dumping my original holding for the tax loss.

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Nice!

-Will

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Thanks. This is it! So it's really a 61 day window period. I knew
something was wrong in my logic..

really_novice_investor wrote:
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The 30-day period described in the wash sale rules runs in two
directions, so it's really a 61-day period that you can't buy the
stock...the trading day, the 30 days before, and the 30 days after.

See the FAQ on wash sales:
http://financial-planning.algebra.co...a_wash_sale%3F

-Tad

really_novice_investor wrote:
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You can designate stock lots to sell. For example I just did this
(altough not within 30 days). I bought 500 shares of stock X, then I
bought another 400 shares of stock X. I am losing money on the first
lot (500 shares), but in the positive for the second lot. I just sold
500 shares, designating the first lot for selling. I will claim this
lost on my tax return. In 30 days I will buy back the 500 shares.

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Morning folks..

I had a question on reducing tax during short term stock trading. One
of the ways to reduce the tax on the profits made during short term
trading is to sell the losing stocks and buy them back after a month or
so (assume same price in a month). The loss can be deducted from the
profit..I am not very clear on the time stipulation on buying the same
stock. What if you buy the losing shares some more before selling those
again ?

Day 1: Stock A, Stock B
Day2: A+, B- (i.e stock A is winning, stock B is losing)
Day 3: I plan to claim the losses in B, but buy some more B. Stock B'
Day 4: Sell B-, Sell A+ (sell all B- stocks bought on day 1, now I
cannot buy more B's for another 31 days, but I just bought them Day 3)

What am I doing wrong here ?

Thanks!
Novice