Message Font: Serif | Sans-Serif
No. of Recommendations: 0
You have it right.
You are now out of WCOM. If you STAY out for 31 days, you can claim the whole loss on your 2000 taxes.
Technically the first sale is a wash sale because of your inadvertent buy when you intended to sell. If you therefore follow the wash sale rule, the loss is carried forward to add to your cost basis of the next buy. Somebody can correct me if wrong, but this may make your long term loss into a short term loss, meaning it would first be netted against short term gains, if that makes any difference.
Usually tax rules are set up to confound any attempt to get out of paying taxes, but it would seem that potentially this could leave you with left-over long, rather than short term gains and therefore save you some taxes. You'd rather have long term gains, so you'd prefer short term losses. I suspect there's some technicality somewhere to keep you from doing that; if so somebody will chime in.
Best wishes, Chris

Print the post  


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.
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.
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.