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ell any losers as a short-term capital loss;
Wait a day;
Sell any winners as a long-term capital gain.



This is basically lousy strategy.

Problem #1. Since it isn't possible that all your losers are short term, and all your winners are long term, you're going to have to sell specific shares to do this, not necessarily FIFO nor LIFO, and you're going to have some stuff left over that might cause a problem.

Problem #2. If you do this, do the long term (gains) first, then the short term (losses) so there's no question that you had a wash sale to adjust. To avoid that when you pick the batches to sell, sell anything that you bought within 31 days either way of a sale that becomes a loss. That way you won't be prohibited from taking those losses. This is more important than your original strategy, whatever it was.

Problem #3. Your wasting short term losses to offset long term gains. Don't take the gains so that the net losses, up to $3,000, are used to reduce your other ordinary income, then take the gains long term next year. Or, if you have more than $3,000 of short term losses make short term gains out of some others instead of long term--the long term will wait till next year--and this might help you avoid some wash sales also.

Problem #4. If you don't have at least $3,000 of short term losses, take some long term losses also, up to a total of $3,000 to use against your ordinary income. In fact rearrange your sales so you generally have $3,000 of net long term losses, instead of short term, if that makes you more short term losses to use next year.

Problem #5. If you are going to day trade short term next year, and think you may make a profit, take more than $3,000 of short term losses and carry them forward to next year. They may be wasted against long term gains next year, but they'll turn into long term losses by next year and will have to offset long term gains first.

You don't care if your losses are short or long term as long as you don't have net short term gains remaining, and don't take long term gains if you otherwise have net losses. You should study the rules so you can manage your tax affairs without help.

Ed
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