Replies to post #61374 on Zeev's Turnips Patch-No Politics (ZEEV)

[Babylon]

Well thanks Rob for the update.

So in this following example, I have $20000 in net LT capital gains (no LT losses), and I have $8000 in net ST capital losses (the $8000 is the NET ST realization [ST gains minus ST losses]), both realized in the same year, so the net taxable gain would be $12000 - which would be taxed at the LT rate. There would be no carry forward, as the ST losses would all be used towards the LT gains in that one year. Also, there's no ordinary income in this example...

Does that still sound right? TIA.

[MKT_entropy]

Rob, how does the wash rule figure into those ST/LT tax calculations? Isn't it an important fact that must be factored in by daytraders? For example, if I buy and sell two different positions in a day trade, am I allowed to offset my gain in one with a loss in the other?

For years, I was just plugging in my transactions into a TurboTax table and relied on what it came up with, but this year I have so many daytrading transactions I'd go crazy trying to do it by hand...

Of course, trading in a 401(k) or IRA account removes this problem, but then isn't shorting forbidden in a tax-preferred account?

M_e