Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: wcw22 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123156  
Subject: Re: Wash rule & Co stock purch plan Date: 8/22/2001 11:48 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Phooley and Charlie48K, thanks for setting me straight. Now you know why I'm not a tax accountant!

I knew the wash sale rule applies to losses, my mistake was assuming it also applies to determining long term vs short term capital gains. (Everyone knows what happens when you assume something).

Charlie48K, your answer did raise another question which I need to research:
Second, the holding rule for your plan is not just one year from exercise of the stock, but also two years from the date of the option grant to become a long term gain. Have you been meeting the two year rule?

I don't know what the 'date of option grant' is for my purchases/sales, but I'll check it out. The company accumulates our contributions as payroll deductions through the quarter then purchases stock on the first day of the following quarter.

On the positive side, I have been reporting the 15% company discount as ordinary income (even thought it isn't reported on our W-2's, or anywhere else that I know about … that's always raised questions in my mind).

Once again Thanks for the replies!
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2015!
Fistula Foundation: A World of Good!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Berkshire Hathaway

Book Review: Dream Big
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.