Is this wash trade... is this legal

W

WhiteOut56

Account A
Account B

I place 1000 shares to buy MOC for PFE in account A
I place 1000 shares to sell MOC for PFE in account B

Both accounts are in my name. Is this legal?

Don't concern yourself with WHY, just wondering is all respects is this legal?
 
why not? from my statements -each account from brokerage firm is treated separately. they not referring to a trades on some other accounts,when calculate wash sale.
on other hand..if IRS really want to screw you-they may use cross between accounts as an argument. i would ask them directly..but i suspect the answer will be-contact your accountant or tax lawyer..that's what they told me couple times,when i ask them a questions :p
 
Technically, yes, this is a wash trade but I don't think (and I'm not a securities attorney) 2000 shares are going to catch the SEC's eye on a stock that trades 50M shares per day. If you did this on some micro stock that trades 200 shares a day then you may get a knock on your door. Just my thoughts.
 
What you described is a wash sale. (See below for IRS' definition)

This is regardless where the equities are acquired. Because you can transfer your assets from one broker to another easy enough. Where you acquire/dispose your assets is not relevant.


From:

http://www.irs.gov/publications/p17/ch14.html#en_US_publink1000172359

Wash Sales

You cannot deduct losses from sales or trades of stock or securities in a wash sale.

A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you:

- Buy substantially identical stock or securities,
- Acquire substantially identical stock or securities in a fully taxable trade,
- Acquire a contract or option to buy substantially identical stock or securities, or
- Acquire substantially identical stock for your individual retirement account (IRA) or Roth IRA.

If your loss was disallowed because of the wash sale rules, add the disallowed loss to the cost of the new stock or securities (except in (4) above). The result is your basis in the new stock or securities. This adjustment postpones the loss deduction until the disposition of the new stock or securities. Your holding period for the new stock or securities begins on the same day as the holding period of the stock or securities sold.
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As long as you dont have a series 7, its ok.

I already have a pretty good idea what you are trying to do and it wont work. Market makers will steal your shares the second they see what you are doing. You will not be able to sell to yourself and get the price higher. Market maker will hide his bids and asks and jump in front of you for a penny, then push that stock down forcing you to sell at a lower price.

Believe me...they know your tricks.
 
Quote from the1:

Technically, yes, this is a wash trade but I don't think (and I'm not a securities attorney) 2000 shares are going to catch the SEC's eye on a stock that trades 50M shares per day. If you did this on some micro stock that trades 200 shares a day then you may get a knock on your door. Just my thoughts.
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SEC have nothing to do with wash sales..if OP is planning something like peilthetraveler mentioned-then maybe :p
 
Quote from Bob111:

why not? from my statements -each account from brokerage firm is treated separately. they not referring to a trades on some other accounts,when calculate wash sale.
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That is not true - you must consider all accounts when determining if a wash sale occurred, you do not treat each account separately.
 
What the OP is proposing is a Wash <b>Trade</b> not a wash sale and it's actually illegal, which means it falls under the jurisdiction of the SEC, not the IRS.

Quote from Bob111:

SEC have nothing to do with wash sales..if OP is planning something like peilthetraveler mentioned-then maybe :p
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Quote from WhiteOut56:

Account A
Account B

I place 1000 shares to buy MOC for PFE in account A
I place 1000 shares to sell MOC for PFE in account B

Both accounts are in my name. Is this legal?

Don't concern yourself with WHY, just wondering is all respects is this legal?
More...
not a first time I see this question. If your broker let you do it then go ahead test your theory if not let it go. Either way dont ask too much question.
 
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