mogami_99

Sirius: Lessons in Manipulation, Part II

The main point about wash sales is you won't get to claim the loss unless the 61 day period is up or the SP goes up to where you sell the replacement shares at a profit. (Then you get the deduction for shares sold at loss)

example
buy 100@1.00
sell 100@.75 (loss=25.00)
buy 150@.50
sell 150@.25 (another loss=37.50)
buy 375@.10
sell 375@.20 (plus 37.50 but it is subtracted from previous wash loss of 52.5 that you could not claim before you sold. Remember you can't claim a loss on stock before you sell it and if you rebuy it is like you never sold it.


Make sense?
It's all legal you gain no benifit from this except YOU CAN INCREASE YOUR POSITION while a SP declines without introducing new money.

Sirius: Lessons in Manipulation, Part II

when it dawned on me SIRI was going to continue down I sold my shares at a loss. When I thought the price had hit bottom I rebought them (actually I was able to buy more shares with the same money)
I actually repeated this process several times before the price finally began the .11 to .14 cycles in Dec where I could sell for a gain and buy back in later at the lower price.
Since the SP kept falling even though I was doing wash sales the only change was I was adding shares each time. (I sold the shares I bought at .60 at .28 and bought twice as many at .14)
All this lowered my average per share. When I finally started selling at a postive the old wash loss was subtracted from my profit. (even though I sold shares bought at .10 for .17 the record still knew the .10's were bought after selling at a loss)

Sirius: Lessons in Manipulation, Part II

Hi, A wash sale is when you sell shares at a loss and then turn around and buy them back. You can't claim the loss now.

The wash sale period for any sale at a loss consists of 61 days: the day of the sale, the 30 days before the sale and the 30 days after the sale. (These are calendar days, not trading days. Count carefully!) If you want to claim your loss as a deduction, you need to avoid purchasing the same stock during the wash sale period.