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#3
12-09-2003, 09:24 AM
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 Re: Would this also be considered a wash sale? "HUDAV847" <hudav847[at]cs.com> wrote: - quote - > First of all, it's my understanding (Please correct me if I
A wash sale only applies to a loss. You can sell a stock at> am wrong.) that the following scenario is a wash sale: > I want to maximize my capital losses for the year without > closing out a position, so I sell a stock at a loss and then > buy it back again with a new cost basis. > Now, what about this: > Earlier in the year, I sold stock A at a loss of $900. I > want my brokerage account to have a net gain/loss of $0 for > the year (Yes, I have a reason.), so I sell enough of stock > B to gain $900 on the trade and net zero for the account. > Then I buy back the same number of shares of stock B (with a > higher cost basis). > Can I do this? Are there any IRS regulations that would > require the trade to be handled differently (like with a > wash sale)? > Is there anything I may be missing. I don't want to get in > trouble. a gain and immediately repurchase it with a higher cost basis. All it costs is the commission. Barry Picker, CPA/PFS, CFP << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
12-09-2003, 08:08 AM
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| Re: Would this also be considered a wash sale? hudav847[at]cs.com (HUDAV847) wrote: - quote - > First of all, it's my understanding (Please correct me if I
This COULD be a wash sale, depending on the timing of your> am wrong.) that the following scenario is a wash sale: > I want to maximize my capital losses for the year without > closing out a position, so I sell a stock at a loss and then > buy it back again with a new cost basis. replacement purchase. If you wait at least 31 days after the sale for loss, there is no wash sale. - quote - > Now, what about this:
There is NO wash sale described here. Your sale for loss was> Earlier in the year, I sold stock A at a loss of $900. I > want my brokerage account to have a net gain/loss of $0 for > the year (Yes, I have a reason.), so I sell enough of stock > B to gain $900 on the trade and net zero for the account. > Then I buy back the same number of shares of stock B (with a > higher cost basis). with shares of stock A. You did not buy replacement shares of stock A, so the loss is deductible. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
12-09-2003, 08:08 AM
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| Re: Would this also be considered a wash sale? HUDAV847 <hudav847[at]cs.com> wrote: - quote - > First of all, it's my understanding (Please correct me if I
within +/- 30 days.> am wrong.) that the following scenario is a wash sale: > I want to maximize my capital losses for the year without > closing out a position, so I sell a stock at a loss and then > buy it back again with a new cost basis. - quote - > Now, what about this:
Perfectly legal to do. No wash sale here.> Earlier in the year, I sold stock A at a loss of $900. I > want my brokerage account to have a net gain/loss of $0 for > the year (Yes, I have a reason.), so I sell enough of stock > B to gain $900 on the trade and net zero for the account. > Then I buy back the same number of shares of stock B (with a > higher cost basis). > Can I do this? Are there any IRS regulations that would > require the trade to be handled differently (like with a > wash sale)? - quote - > Is there anything I may be missing. I don't want to get in
Your good reason might not be what you think it is.> trouble. You could be making assumptions that are not correct. __ 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 > << -------------------------------------------------> |
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12-09-2003, 08:08 AM
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| Re: Would this also be considered a wash sale? hudav847[at]cs.com (HUDAV847) wrote: - quote - > First of all, it's my understanding (Please correct me if I
There's absolutely nothing wrong with this. The Feds rarely> am wrong.) that the following scenario is a wash sale: > I want to maximize my capital losses for the year without > closing out a position, so I sell a stock at a loss and then > buy it back again with a new cost basis. > Now, what about this: > Earlier in the year, I sold stock A at a loss of $900. I > want my brokerage account to have a net gain/loss of $0 for > the year (Yes, I have a reason.), so I sell enough of stock > B to gain $900 on the trade and net zero for the account. > Then I buy back the same number of shares of stock B (with a > higher cost basis). > Can I do this? Are there any IRS regulations that would > require the trade to be handled differently (like with a > wash sale)? > Is there anything I may be missing. I don't want to get in > trouble. complain if you do something that will increase that year's tax. -- Barry Margolin, barmar[at]alum.mit.edu Woburn, MA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
12-07-2003, 11:19 PM
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| Would this also be considered a wash sale? First of all, it's my understanding (Please correct me if I am wrong.) that the following scenario is a wash sale: I want to maximize my capital losses for the year without closing out a position, so I sell a stock at a loss and then buy it back again with a new cost basis. Now, what about this: Earlier in the year, I sold stock A at a loss of $900. I want my brokerage account to have a net gain/loss of $0 for the year (Yes, I have a reason.), so I sell enough of stock B to gain $900 on the trade and net zero for the account. Then I buy back the same number of shares of stock B (with a higher cost basis). Can I do this? Are there any IRS regulations that would require the trade to be handled differently (like with a wash sale)? Is there anything I may be missing. I don't want to get in trouble. thanks! << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| considered, sale, wash |
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