Can you hit your own bid from your other account?
- Thread starter giggollo
- Start date
Yes, i want the details please, i know its obvious to you guys, but im still trying to make sense of it. So lets say i bought LMRA in my regular account at $2 and it's now at $7.5. So i place a limit order to sell my LMRA at $7.5 in my regular account and then take that offer with a buy order in my IRA account. Haven't I now ended up with a long LMRA position in my IRA account and no position in my regular account, but have now realized my $2 to $7.5 gain in my regular account. Am I not now taxable on this gain in my regular account, and just ended up with a long LMRA position with no gain in my IRA account?
That's not the way to transfer gains from one account to another.
Say LMRA is an after-hours ghost town. There are no market participants besides you and your 2 accounts. You have $250,000 in taxable gains in your domestic account ('Account A') , and wish to illegally transfer those gains to a hidden offshore account ('Account B'), thus greatly reducing your tax liability.
You proceed to have account A offer out the shares at $7, immediately buying at that price in account B. Then account B offers those shares at $8, with account A buying at that price. Repeat this procedure as many times as needed, until the domestic account no longer has that pesky tax liability any more.
yep. that was the game. there used to be lots of thinly traded stocks that had no after hours support.
...but that gain is completely negated by the artificial losses you'd create, as described in my example.
Look, it's no big deal. This whole hypothetical situation is nothing more than one big <b>moot point</b>. If one wanted to illegally evade taxes, there are far more logical ways to do it.
no. there used to be thinly traded stocks that had no bid or offers after the market closed. you could be the only player on both sides.