Zeev's Turnips Patch-No Politics (ZEEV)

[MONYMAN3]

MKT-entropy If you are truly a daytrader and are qualified as such (must mark to market at the end of the year) wash sales don't apply to you. All trading gains are treated as ordinary income and long term vs short term distinctions don't come into play. As you know the "wash sale rule" says that if you sell a stock for a loss and buy it back within a 30 day period before or after the loss sale date, the loss cannot be IMMEDIATELY claimed for tax purposes. Instead the disallowed loss is added to the cost basis of the repurchased stock.
Therefore the loss eventually can be claimed when disposed of in a non wash sale transaction (a gain or outside the 30 day timeframe). It is my understanding that wash sales don't apply if you close out your entire position in the stock prior to the end of the year and then stay out of the stock for the required 30 day period prior or after the date of the loss.

As for Turbo Tax, after you fill out schedule D, a box should appear that allows you to specifically ID tranactions that were "wash sales". Of course, thats assuming you kept a running record of such transactions.

I know shorting is not allowed in my IRAs.

BTW- Wash sales are addressed in IRS Publication 550

Hope that helps. Please verify this with the tax professional of your choice. Rob