Phoenix Associates Land Syndicate (fka PBLSQ)

[tedwitt]

For all considering taking a tax loss. I have read several posts about selling for the tax loss. Most people think that you have to totally eliminate a position. This is not true. There is another way and it will allow you to keep your position and washout other gains at the same time.

For example: I have some sizeable gains related to SLJB, PGPM, CWPC, NDOL, & Connacher. How to cover the gain: The IRS has a 31 day rule. Most believe that you have to sell out and stay out for 31 days. Well the 31 day rule works in reverse as well. You can double down today and then in 31 days you can sell a matching portion to your higher basis. Then follow the 31 day rule about buying any more of the stock. When you sell, you do it over the phone with a broker and state that the trade is a “Verses Purchase” type of trade. Save the print out for your taxes. If it is a sizeable amount consider using a CPA or some thing like H&R Block to file. It will put you in the less likely to be audited category. Even though it is legal this will not match the 10?? form Scottrade or some other trading platform will send to the government and it could stick out like a turd in a punch boal at a church social. So use some one like a CPA to sign off on it.


Say I have 1,000,000 shares at an average of .024 = $24,000 (now worth $6,000). I buy 1,000,000 more shares for $6,000 on Monday and wait 31 days (I give it 32 days to be safe) and I sell 1,000,000 shares. Then I get the $18,000 tax loss and hold the same amount of shares and was never totally out of the stock, just incase for some reason they got their shit together and released something big. I take the $18,000 tax loss to match up with the gains and washout an $18,000 taxable liability and if it is still trading at .006 then I get the $6000 I used to purchase back. At the same time your basis in PBLS is reduced. There is still time to do it this way before the end of the year. If by some chance PBLS went up past your highest basis, (Not likely) then you are screwed on the idea but you will have in turn averaged down and will be showing green.

Use it or lose it.