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Author: mdhirz Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120781  
Subject: Wash Sales by Roy Lewis (TMF taxes) Date: 3/3/2003 11:32 PM
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Wash Sales by Roy Lewis (TMF taxes)

http://www.fool.com/taxes/2000/taxes001006.htm

states:
"...the wash sale rules really become moot if you close out your entire position in the stock prior to the end of the year... and then stay out of the stock for the required 30-day period before or after the date of the loss sale....

the wash sale transactions actually become meaningless, and Larry can compute his gains and losses as he regularly would....

So, remember: the wash sale rules really only apply when the transactions bridge two tax years. You can trade all you want throughout the year, but if you close out your position prior to the end of the tax year and stay out for the required period of time, the wash sale issues are really not important...."

This reads as if one doesn't have to 'compute' a 'wash sale' if stock is 'completely sold out' (say on)Dec 31 and isn't bot again by Jan 31th of the next year?---

1. so i've been 'computing' wash sales of stocks i have 'sold out' and didn't buy again (but saving the really hard ones for last- those 10-20 times traded)--can i forget the 'wash rule' then?...Isn't it 'required' anyway?

2. but my real 'stumper' is a stock i traded from Nov-Dec and Jan-with an 'adjustment'--was 5,000 shares and became 3000---including for example orders to buy or sell 1000 shares which have multiple different prices (and when this happens on the same day-is it "various"?)....bottom line stock kept going down into Jan when i sold out-and the 'loss' will have to be 'carried over' ie, not allowed this year?

thanks again folks
mike
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