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Financial Planning / Tax Strategies


Subject:  Re: Wash sale Date:  12/5/1997  3:16 PM
Author:  KATinChicagoland Number:  830 of 123001

<<Need some advice due to a really stupid move on my part. Here's the situation. I have purchased a total of 130 shares of Cymer (CYMI) in three different lots. The first two lots total 90 shares and show a substantial loss. Today (12/5), I decided to sell these 90 shares for a year-end tax loss, planning to try to pick shares up again after 31 days. Unfortunately, I forgot to check the purchase date on the remaining 40 shares, which happened to be 11/5. If I am correct in my interpretation of wash-sale rules, this would mean my capital loss would be disallowed on 40 of the shares I sold. Had I waited until Monday to sell, there would have been no problem.

What is my best option? If I sell the remaining 40 today, I should be able to deduct the loss as long as I don't repurchase any shares before Jan I right? Any other better options?>>


You are correct, except that by my count the first day you can repurchase after a sale today (December 5) and be outside the wash sale window is January 5, not January 6, because there are 31 da