Is it legal to sell one stock and buy it back 2 weeks later?
2006-06-23 08:00:03 · 8 answers · asked by Thor 5 in Business & Finance ➔ Investing
Sure, buy and sell it 100 times.
The illegal part is called insider trading, price manipulation, etc. When you do something with your stocks, -that the general public doesn't know, or hasn't been told yet.
--Sorry Martha, lying to the FBI was a bad thingy too.
2006-06-23 08:03:15 · answer #1 · answered by MK6 7 · 0⤊ 0⤋
it is perfectly legal to do it. In case of loss, IRS can treat it a Wash sale & then u will not be allow to deduct that loss, However it gets added to your cost basis.
Example: original cost $10, sold it for $6 on 1st jan , bought it back within 30 days @ 6.5.
So u can not deduct loss of 4, but your cost basis is 6.5+4=10.5.
So when u finally sell it u will get any loss as dectible.
2006-06-23 10:55:44 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It's legal, it's a matter of tax consequences. Wash Sale rule means you have to wait 30 days to maintain tax deduction for a loss. Check out Wash Sale.
2006-06-23 08:07:26 · answer #3 · answered by kingyahhoo 3 · 0⤊ 0⤋
Yes. There are tax ramifications, however, if you took a loss and bought back within 30 days. Look up "wash sale"
2006-06-23 13:41:31 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Legal, yes. May have tax implications tho'.
2006-06-23 11:49:28 · answer #5 · answered by popeleo5th 5 · 0⤊ 0⤋
Yes.
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2006-06-23 10:01:42 · answer #6 · answered by Anonymous · 0⤊ 0⤋
no, but the taxes are different on the gains you make.
2006-06-23 08:04:02 · answer #7 · answered by DesignR 5 · 0⤊ 0⤋
Have a look here.
2006-06-23 08:03:37 · answer #8 · answered by Anonymous · 0⤊ 0⤋