Barry Margolin wrote:

- quote -

I'm not sure why the original poster WANTS to do this,
either.

If he has a reason, why couldn't the government object?

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Barry Margolin wrote:

- quote -

I'm not sure why the original poster WANTS to do this, either.

If he has a reason, why couldn't the government object?

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Arthur L. Rubin" <ronnirubin[at]sprintmail.com> wrote:

- quote -

I can't imagine why the government would object to a "sham
transaction" that results in them receiving more tax
revenue.

--
Barry Margolin, barmar[at]alum.mit.edu
Level(3) Communications, Woburn, MA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Stuart O. Bronstein wrote:

- quote -

The wash sale rules apply only to stock sold at a loss and
replaced with substantially similar securities.

Regards,
Bill
~~~~
Associate Professor of Accounting
Longwood University
Department of Accounting, Economics & Finance
http://www.longwood.edu/staff/wpbrown/
Opinions expressed by me are mine, not my employer's.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Stuart O. Bronstein" <stu[at]lexregia.com> wrote:
- quote -

No, wash sales only defer taking the loss. Gains are locked in.

The reason is simple: you increase your tax when you realize
a gain, you reduce your tax when you realize a loss, and the
government has nothing against you paying more tax
voluntarily.

--
Barry Margolin, barmar[at]alum.mit.edu
Level(3) Communications, Woburn, MA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Stuart O. Bronstein wrote:
- quote -

Nope. Only losses are ignored. However -- submitting the
buy and sell orders on the SAME business day may be
considered a sham transaction. I think I'd sell on Monday
and buy on Tuesday.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Stuart O. Bronstein <stu[at]lexregia.com> wrote:
- quote -

Stu:

I think you are mixing up wash sales with constructive sales.

A wash sale occurs when the stock is sold at a loss and
within +/-30 days substantially identical stock is
purchased.

This situation here, however, is where the holder has a gain
he wishes to lock in, perhaps to postpone declaring that
gain for some time, without taking significant risk. That
used to be possible through use of a short against the box
(put the long shares you hold at a gain into a "safe box"
and simultaneously short that same stock.)

But for several years now that sort of transaction is --
unless you do some fancy footwork in January -- and take a
certain risk =-- produces a constructive sale which negates
any such tax benefit. See IRS Pub 550 for its discussion on
constructive sales.

- quote -

For wash sales, options on a stock are substantially
identical with that stock. For constructive sales, options
deep in the money are included in the constructive sale. I
beleive Pub 550 also contains a good statement of what is
meant by deep in the money.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Stuart O. Bronstein" <stu[at]lexregia.com> writes:

- quote -

That applies only to losses. The OP has a gain.

Phil Marti
Topeka, KS

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Barry Margolin <barmar[at]alum.mit.edu> wrote
- quote -

Isn't there a 30-day, wash-sale rule? If you replace stock
within 30 days (at least last time I checked it, which was
quite a while ago) of when it's sold, the new stock takes on
the basis of the old, and any profit or loss is ignored.

People have been trying to shift income from one year to
another for a long, long time. When I first started
practicing, there were various "stradles" developed for that
purpose. All have subsequently become illegal.

I suppose he could sell the stock and offset that with
purchasing options to buy at the same price (or less if he
can) after 30 days. But that's all I can think of. And I
don't know that would work.

Stu

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

esther8850[at]hotmail.com (Ronald) wrote:

- quote -

You can call your broker and submit both buy and sell orders
for the same number of shares.

I'm not sure why you would want to do this, though. You'll
pay commissions and taxes, but have no additional cash in
the bank. And you'll also lose the spread between the bid
and ask price of the stock.

--
Barry Margolin, barmar[at]alum.mit.edu
Level(3) Communications, Woburn, MA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

If I purchase a stock today and in two to four months it
goes up signifigantly - 30-50%, how can I "lock in this
profit" and take it as capital gains without risking the
stock going down. Many years ago I used a manuever known as
"selling short against the box". It entailed another
sell/buy set of commissions but guaranteed my capital gain
profit after 6 months. Is this technique still utilized or
are there newer techniques.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->