"Jerohm" <jrmohrREMOVE[at]snet.net> wrote:

- quote -

a) shorting a stock does not create a wash sale on a
previous losing long transaction. The subsequent closing
of the wash sale with a purchase would look like replacement
shares, but how can a sold positin be replacement shares?
It can't.

b)I don't understand your question, but if in a cascading,
same lot size, series of wash sales in the same year the
last sale, after absorbing the adjustments, is a gain, you
can ignore all the previous wash sales as the total of the
transactions is a gain and the last sale is not a wash sale.

AS for your example ignore the short wash sale unless you
have a subsequent short sale to trigger it into a wash sale.
ed

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Jerohm <jrmohrREMOVE[at]snet.net> wrote:

- quote -

Not nececessarily so.

The biggest worry is if you cross tax years.

Even if in the same tax year, while the practical result may
be the same if you ignore the wash sale, there is no
authority in the law to let you do this.

- quote -

See IRS Pub 550 for examples of wash sales, and pay special
attention to how a wash sale changes the acqauisition date
for the washed security.

Most people only point out that you have to adjust the basis
of the security that caused the wash sale without discussing
the change in acquisition date.

--

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

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I understand that if you buy back a stock, after a loss
sale, within 31 day, you have adjust the (new)purchase price
basis, rather than book the (previous) sale loss (Wash
Rule).

a) Can someone give me an example of how this applies to a
subsequent SHORT position.

b) Is it true that if the LAST transaction, is MORE
profitable, then the sum of all the immediately preceding
losses, you STILL effectively get to offset the losses
against the more profitable transaction.

An example of a LONG loss, followed by SHORT loss, and then
a LONG gain within the constraints of the Wash Rule ( within
31 days ), would be greatly appreciated

Thank You

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