illegal trading strategies

Discussion in 'Retail Brokers' started by firstchoice, Jun 24, 2006.

  1. If you use it with "wash trade".
     
    #21     Jun 25, 2006
  2. It is perfectly legal to hold offsetting long and short positions, in the same instrument, in different accounts. The wash sale rule and other rules aim to prevent such strategies from obtaining a more favorable holding period or other tax advantage. Tax laws do not limit trading; they instead control how taxes are computed based on whatever trades have been done.
     
    #22     Jun 25, 2006
  3. twinx

    twinx

    Sorry, i dont understand the thing with tax & "wash sale". maybe my english ist to bad...? The "wash trade" 2.) definition a undrstand, but not the "wash sale".

    Can someone do a view simple words more about "wash sale" concerning tax?

     
    #23     Jun 26, 2006
  4. alanm

    alanm

    Quote from twinx:
    Can someone do a view simple words more about "wash sale" concerning tax?


    See Publication 550 at www.irs.gov . It includes examples.
     
    #24     Jun 26, 2006
  5. twinx

    twinx

    The example...
     
    #25     Jun 26, 2006