I have a very basic and ignorant question about investing and taxes. I'm sure this has been covered, but I'm not finding the info I need ... so here goes.Would it be a good idea to sell some stocks for a loss now that the market is down and buy them right back again? This would give me a loss to offset gains at the end of the year. Can these losses only be used against capital gains, or can they be used against other income, too? If so, what types of income? Any help would be appreciated. Thanks in advance.--ctd22
To sell a stock at a loss and buy it right back again is called a wash sale. You can't deduct the loss in any way, shape or form until you have again sold, and stayed out of that or "substantially equal" stock for 31 days. Nice try. Chris
<< I hope I'm not miscommunicating, especially with you since I follow all your articles. What I expected to do, was file my 1999 return, showing full recharacterization of the conversions, even though I wouldn't have in my possession, updated 1099R's and 5498's showing the recharacterization. I plan to efile, and 1099 & 5490's are not needed to be attached to the payment and payment voucher. >>Chris covered the basics. You can read up in the FAQ. Search for "wash sale" and "netting."TMF ExROPhil Marti
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