qwik - I believe the usual interpretation of "essentially the same" security would NOT match up INTC and AMD. They are different securities for purpose of the wash sale rules, even though they might be price correlated. However, if you dumped INTC and bought INTC calls, then you could run afoul of the wash sale rule because the calls are essentially the same security in that the calls can be exchanged for the equity.
another example of "substantially identical stock" would be common stock and preferred stock in the same company.
Can someone tell me the number of the publication used to elect "mark to the market" accounting. Also, can anyone elect this status, or do you have to be (or declare) yourself a professional trader? Thanks for the help.
I had the same problem with mtm election last year...checkout the following website : and print it for your own records. Follow the steps. Its already too late for making election on the trades done for 2001. in order to do it for 2002, the statement of your election must acompany 2001 tax return or 2001 extension but they must be in no later than april 15. if you missed it...youll have to wait until next year. this info is also based on some of my research done early this year. Follow the website and consult a tax accountant just to make sure. Good luck
http://traderstatus.com/mark2mkt.htm#missed This website is a goldmine of tax strategy information including Mark-to-Market election and the Wash Sale rule. Beware the Mark-to-Market trap. If you have substantial previous capital losses to carry forward on Sched D, it may be more beneficial to elect Mark-to-Market in a year after these have been used to offset capital gains. After the election, M-to-M gains/losses are reported on Form 4797. Thus previous carryover losses will be "locked in" to Sched D except for the $3000 yearly allowable to offset ordinary income. Just my thoughts..... RS