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Author: 16bobby Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121316  
Subject: Wash rule! Is the IRS kidding?? Date: 8/26/2001 5:17 PM
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Hi fellow fools:

Need some REALLY BIG help!! I bought 1000 shares of XYZ and sold the stock for a short term profit of $2000.00. 5 days later, after I saw the stock tank I repurchased 1100 shares and I began to see the stock making me more profits. However, the stock reversed course and hit my stock loss quote for a loss of $1500.00. I figured I had a net profit of $500.00.

I'm positive some some group delibertly caused the stock to tank contributing to my $1500.00 LOSS but that another story. 14 days after I sold the stock for the SECOND TIME, the XYZ COMPANY put out an anouncement verifing why I bought the XYZ stock the 1st and 2nd time. I now want to buy the stock back again( the THIRD TIME) because I'm certain the stock will advance smartly and MAKE ME ANOTHER PROFIT but AM afraid to make a purchase because of the 'WASH RULE'.

I asked this question on another FOOL Board and was given two articles to read and was refered to this specialized FOOLS board. Please correct me if I'm wrong: I'm in violation of the 'WASH RULE' already because THE SECOND TIME I BOUGHT AND SOLD 1000 XYZ SHARES(FOR A $1500.00 LOSS) WAS ONLY 8 DAYS AFTER MY ORIGINAL 1000 SHARES SALE NETTING ME A $2000.00 PROFIT? ARE THEY SERIOUS? OR ARE THEY JOKING?

I Know the rule states that...' if you sell stock for a loss and buy it back within the 30 day period BEFORE or AFTER THE LOSS-SALE DATE, THE LOSS CANNOT BE IMMEDIATELY CLAIMED for TAX PURPOSES'. Was someone SMOKING SOMETHING at the IRS when THIS RULE WAS MADE OR INTERPETED???

Did the IRS thinK I bought the XYZ stock THE SECOND TIME to DELIBERTLY LOOSE MONEY??? BULL, I BOUGHT IT TO MAKE ANOTHER PROFIT. I asked the question to another FOOL'S board BECAUSE I WANTED TO BUY IT AGAIN FOR THE THIRD TIME!!! IS THIS INTERPETATION CORRECT? AM I GOING TO LOSE THE $1500.00 BECAUSE I BOUGHT THE XYZ STOCK THE FIRST TIME BEFORE I TOOK THE LOSS THE SECOND TIME??? PLEASE, PLEASE SAY IT ISN'T SO. HOW CAN I CLAIM THE $1500.00 LOSS? HOW CAN I BUY THE XYZ STOCK AGAIN FOR THE THIRD TIME WITHOUT VIOLATING THE INFORMUS ' WASH SALE RULE'. PLEASE TELL ME WHAT I HAVE TO DO???
Thanks a million FOOLS for your help.
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