Wash Sale Rule Reminder. To get a tax credit on
Post# of 4419
To get a tax credit on a loss you must not have bought cheaper cost basis tax lot shares than the ones you sell within the last 30 days
and
after selling any shares for a loss you must not buy back any at any price for the next 30 days
or the tax loss will be disallowed as a "wash sale".
Hence why on a r/s announcement, my strategy is:
Don't sell any shares before the r/s.
Buy the cheapest shares available before the r/s in relatively large quantities compared to the total held at higher prices.
After the r/s, buy "new shares" if it opens below par and trade those from the bottom up until the replacement shares for the original ones are available.
Trade replacement shares from the bottom up.
Monitor date when replacement for "old shares" would change from short term to long term (November / December 2019) and take tax loss if desired in current year if it looks like price won't reach. Also tax long term losses in 2020 to balance all long term gains .
Worked out just fine on the last 4 r/s in 2018.
Enviro-Serv, Inc. (EVSV) Stock Research Links
A very apposite motto for those who trade successfully in the OTC market..
All posts are my opinion - trade at your own risk.