Thanks for the info.
I did have longs and shorts that were held overnight. I take it if I were to "misreport" the cover dates for my shorts, it wouldn't affect the accuracy of the K-1 in any way?
Wash sales does not apply to ETFs?
- Thread starter bat1
- Start date
Thanks for the info.
I did have longs and shorts that were held overnight. I take it if I were to "misreport" the cover dates for my shorts, it wouldn't affect the accuracy of the K-1 in any way?
Also, note that if your K-1 shows a gain in one of the boxes, that usually means you get to increase your cost basis for that partnership assuming you got rid of all of your units before yearend. So in other words, for short term traders, usually all this K-1 stuff is a formality that doesn't change your tax liability at all.
they apply if you sell and buy the exact same etf, but you can always find one that is practically similar and buy that
for instance, I had a loss in the Vangaurd S&P 500 index fund, and simply sold it one December and bought the Vanguard Total Stock Market index fund, no problem
It doesn't really matter what etf you are in, if you have a loss, you can usually find another one with a different name but, for the most part, the same holdings
the shit will probably hit the fan when you sell a 1 times inverse bond fund, and buy the 2 times inverse fund, but it will take them years to figure out if that is a wash
they will have to elect people, then they have to appoint people, then they have to set up a commission, and finally somebody rich enough who got hurt by the ruling will higher a high priced attorney who will challenge it (and even that can be avoided by selling the Acme bond fund and buying the Standard bond fund.)
Their little small minded computers probably only go up to 5 characters (because that is all we needed at the time, and it would cost another vote in congress to go to six) so as long as the sell and the buy symbols don't match, they have other people to torment.
for instance, I had a loss in the Vangaurd S&P 500 index fund, and simply sold it one December and bought the Vanguard Total Stock Market index fund, no problem
It doesn't really matter what etf you are in, if you have a loss, you can usually find another one with a different name but, for the most part, the same holdings
the shit will probably hit the fan when you sell a 1 times inverse bond fund, and buy the 2 times inverse fund, but it will take them years to figure out if that is a wash
they will have to elect people, then they have to appoint people, then they have to set up a commission, and finally somebody rich enough who got hurt by the ruling will higher a high priced attorney who will challenge it (and even that can be avoided by selling the Acme bond fund and buying the Standard bond fund.)
Their little small minded computers probably only go up to 5 characters (because that is all we needed at the time, and it would cost another vote in congress to go to six) so as long as the sell and the buy symbols don't match, they have other people to torment.
Read:
http://www.smartmoney.com/taxes/income/understanding-the-wash-sale-rules-9860/
Especially the "substantially identical" portion of it. You're definitely not playing conservatively if you substitute one ETF for a similar ETF in order to avoid a wash sale.
http://www.smartmoney.com/taxes/income/understanding-the-wash-sale-rules-9860/
Especially the "substantially identical" portion of it. You're definitely not playing conservatively if you substitute one ETF for a similar ETF in order to avoid a wash sale.
you gotta be kidding me. These guys have never done batlle with the IRS. They are just college kids that took journalism classes. Ask the author of that consumer protection article how many times he has tried it? True, selling one 500 fund and buying another may not quite get it, but nobody that manages their own money would take that chance.
A wash sale is only if you have to carry a loss into the new year because you didn't wait 30 days. Get flat on your POTENTIAL wash sale instruments some time in December, DON'T trade those instruments for 30 days into January and then there is no loss to carry forward. During January through November, you can generate all the potential wash sales you want without ever having to show tedious carry forward losses on your tax form because they're never realized wash sales.
If you're supporting your lifestyle with market gains on a daily basis then sticking with Section 1256 instruments saves you 6K-8K in taxes per 100K in gains vs. the alternative. Just shut down any non-Section 1256 trading instruments every December and you're golden. Wash sales never exist doing this and you save a bundle in unnecessary taxes.
If you're supporting your lifestyle with market gains on a daily basis then sticking with Section 1256 instruments saves you 6K-8K in taxes per 100K in gains vs. the alternative. Just shut down any non-Section 1256 trading instruments every December and you're golden. Wash sales never exist doing this and you save a bundle in unnecessary taxes.
yes, except that one glaring statistic
for long term stock investors, just missing the 4 most important days of the year can turn your return from profitable to average, to breakeven, or even to a loss
so all you are doing is to encourage investors to gamble that a big day won't occur while they are waiting out the 30 day wash sale period.
Hello SteveH,
I have found your posts on ET to be invaluable. I would love to be able to ask you a few questions regarding "adding to trades". If you are open to that I would really appreciate it. Could you please pm me as I cannot pm or email you (totally understand).
Didnt know how else to get in touch with you, thought I would try this.
Thank you kindly,
PB
I have found your posts on ET to be invaluable. I would love to be able to ask you a few questions regarding "adding to trades". If you are open to that I would really appreciate it. Could you please pm me as I cannot pm or email you (totally understand).
Didnt know how else to get in touch with you, thought I would try this.
Thank you kindly,
PB