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

- quote -

The bought-back stock receives the purchase date of the
original stock. This means you can't shorten your holding
period by a wash sale. This also means you can mistime your
sales in such a way as to convert two short-term losses into
one long-term loss.

--
Chris Green

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

- quote -

No.

- quote -

The was sale rule (to which you are referring) not only
tacks the disallowed loss onto the basis of the
"replacement" stock, it also tacks the "washed" stock's
*holding period* onto the "replacement" stock. As you can
see, that will prevent the conversion of LT loss into ST
loss.

- quote -

See IRS Pub 550 and look for the section on wash sales.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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

- quote -

No. When the wash sale rule applies, the holding period
remains unchanged.

Phil Marti
Clarksburg, MD

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Jerohm wrote:

- quote -

No. See "wash sale."

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

- quote -

Pub 550 will tell you the stock you acquire in a wash sale
takes the holding period of the stock you sold at a loss.
So, no, you cannot convert a long term to a short term loss.

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

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erohm wrote:

- quote -

When you buy it back within the 30 day period you create a
wash sale. You can't claim a loss. The basis of the new
stock includes the disallowed loss on the stock sold. The
holding period for the new stock includes the holding period
of the sold stock.

--
Alan
http://taxtopics.net

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

- quote -

NO, the wash sale rules don't work that way. When you adjust
the basis of the "replacement" shares for the deferred loss,
you also change the holding period of the replacement shares
to that of the shares sold for a loss. If the deferred loss
(the wash sale) was Long Term, then eventual sale of the
replacement shares will be either LT gain or loss.

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- quote -

No, you can't. When you have a wash sale, not only do you
roll the loss into the new cost basis, you reset the holding
period to the purchase date of the sold lot. So, your
long-term loss retains its long-term character in the new
holding.

Ira Smilovitz

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Can you sell a stock with a long term capital loss and buy
it back in less than 30 days, effectively converting a long
term loss into a short term loss? I KNOW you can't
claim(use) the loss until you sell the new position and stay
out of the stock for more than 30 days. I am sure that I am
not the first to think of this, but I haven't been able to
find any documentation strictly addressing this behavior
(but I haven't really looked too hard either!) Thanks

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