Advanced Micro Devices Inc (AMD)

[rlweitz]

Wash Rule

The Wash rule is one of many idiotic tax regulations. If I sell an equity for a loss, that loss has been realized whether I buy the equity back 5 minutes later or 5 years later. The government will eventually get my taxes back as I've just lowered my dollar cost average and will eventually sell sometime in the future.

If I want to realize a tax loss, but don't want to lose my position, I'll sell the equity from my personal account and buy the position right back from my retirement account. Unfortunately, this last year, I sold a portion of my AMD position for the tax loss without covering it from my retirement account. I was banking on a pullback that never happened.