Replies to post #9838 on GTC Biotherapeutics (fka GTCB)

[croumagnon]

The Wash rule should not be the reason that we buy and sell stock and it is not always as applicable as you might think...

1) For retirement plans, it has no effect whatsoever...
2) For regular accounts, it only has a bearing on what you do if you do it within the last 30 days of the year, or if you do not liquidate your position during that year...
3) even in the cases where the wash rule affects your taxes, it still should not be the determinant factor on how to trade...

[mouton29]

<<I guess the Wash Rule is no concern for [master trader Cromagnon]. >>

Why should it be? The loss is not permanently disallowed, it effectively can be used to offset later gains on the stock. More significant from a tax standpoint is that you start a new holding period.