The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: stock sale and rebuy||Date: 1/18/1999 9:05 PM|
|Author: TMFTaxes||Number: 8549 of 122105|
[[Because of an investment club decision, if I am forced to sell my AOL shares
(she says with tears streaming down her face)]]
Geez...I don't blame you. It might be time to find another investment club.
[[.....if I rebuy them, is there a
certain amount of time I should wait as far as a favorable tax situation???? ]]
Nope. You'll OBVIOUSLY sell them for a gain. That being the case, you won't have to worry about the "wash sale" rules. If you would like to read more about the wash sale rules (which kick in when you sell at a LOSS, and then turn around an buy back into the same shares), you can read all about it in the Taxes FAQ area.
[[ Don't want to sell, but if I have to I want to get back to my current position.]]
But don't think that just by buying the shares back that you'll avoid your share of the gains made by the investment club. It doesn't work like that. If the investment club sells, the taxable gain will be passed through to you (based upon your % holding in the club) regardless of what you do with the money. So buying additional AOL shares will NOT allow you to avoid your share of the taxes on the sale by the club.
This is explained in more detail in the TMF Investment Tax Guide. You might want to check it out.
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