A final danger is the " wash sale " rule : If investors sell at a loss and buy substantially identical securities 30 days before or after the sale, the IRS will disallow the tax gain.
42.
But here, too, you must buy the additional shares by Friday so the existing position can be sold by Dec . 31, enabling you to qualify for the 1996 tax break and to skirt a wash sale.
43.
Forced out of the exchange, Delta's debts were estimated at over 2 . 5 billion drachmas ( dlrs 10 . 4 million ), and money movers claim the sum accumulated as a result of rampant wash sales.
44.
A wash sale, in which the investor sells an asset and buys it ( or a similar asset ) right back, cannot be treated as a loss at all, although there are other potential tax benefits as consolation.
45.
There's a so-called " wash sale, " which occurs if you purchased the same share of the same mutual fund, including reinvested dividends, within 30 days before or after you sold shares on which you have a loss.
46.
If you'd like to generate a tax loss but think the market may be close to a bottom and don't want to be out of the market for 30 days, there's a way around the wash sale rule.
47.
I know that if I sell a stock at a loss and then buy back the shares before 30 days have elapsed, it's considered a wash sale and I can't immediately claim the capital loss on my income taxes.
48.
Q : I bought 100 shares of XYZ Corp . for $ 90 per share and the next day sold it for $ 80, then the day after that bought it back for $ 80, creating a wash sale.
49.
Then you can sell the original holding on Dec . 29, the last trading day of the year, and avoid the " wash sale " rules that bar investors from taking losses if they make offsetting trades within a month.
50.
For example, you could sell shares in an S & AMP; P 500 index fund and buy shares in another family's S & AMP; P 500 index fund without violating the wash sale rule, according to IRS spokesman Jesse Weller.
