selling stocks for tax loss?

Question

I heard Wednesday is the last day to sell to use the losses against your taxable income? I want to buy back on January 2nd because I believe in the stock. Is this advisable?

Answer 1

If you repurchase a security within 30 days of selling it the IRS calls this a "wash sale" and disallows the loss deduction. If you attempt this and are audited, they will penalize you.

The last date you can sell any securities to take a loss for tax purposes is the last day of the year - December 31st.

Answer 2

A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you:
*Buy substantially identical stock or securities,
*Acquire substantially identical stock or securities in a fully taxable trade, or
*Acquire a contract or option to buy substantially identical stock or securities.

If your loss was disallowed because of the wash sale rules, add the disallowed loss to the cost of the new stock or securities. The result is your basis in the new stock or securities. This adjustment postpones the loss deduction until the disposition of the new stock or securities.

Answer 3

If you buy back the same stock so soon, you will be excluded from taking any loss on it under the "wash sale" rules. If you file for the deduction, you may be charged with fraud if you are audited. Be very careful. You can play silly games with some folks, but not the IRS!

Check with your accountant...

Answer 4

Wait until 31 days have passed so you don't run afoul of the "wash sale" rules and yada.

Answer 5

Its up to you keep in mind that you will have to report the earnings from what you sell and the person above me is correct.