Comments on: Tax Tips for Tykes http://www.getrichslowly.org/blog/2006/12/08/tax-tips-for-tykes/ Personal finance that makes cents. Common sense advice on topics from high interest savings accounts, frugality, cd rates, money market accounts, mortgage rates, how to get out of debt, money management and more. Thu, 18 Mar 2010 11:15:22 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: gotrootdude http://www.getrichslowly.org/blog/2006/12/08/tax-tips-for-tykes/#comment-32369 gotrootdude Wed, 20 Dec 2006 18:09:01 +0000 http://www.getrichslowly.org/blog/2006/12/08/tax-tips-for-tykes/#comment-32369 I find that I make a better return from open source lending groups than investing in funds. Normal stock funds tend to be to volitile/risky. With open source lending, you have many more managers handling the fund since each person in the group stands to lose if it doesn't perform. I find that I make a better return from open source lending groups than investing in funds. Normal stock funds tend to be to volitile/risky. With open source lending, you have many more managers handling the fund since each person in the group stands to lose if it doesn’t perform.

]]> By: Belligerati http://www.getrichslowly.org/blog/2006/12/08/tax-tips-for-tykes/#comment-28969 Belligerati Thu, 14 Dec 2006 02:57:41 +0000 http://www.getrichslowly.org/blog/2006/12/08/tax-tips-for-tykes/#comment-28969 <strong>That's peculiar...</strong> Did you know that the wash sale rules apply to losses, not gains? That is, that when you sell an asset that has a capital loss on it and then buy it right back you don't get a tax deductable...... That’s peculiar…

Did you know that the wash sale rules apply to losses, not gains? That is, that when you sell an asset that has a capital loss on it and then buy it right back you don’t get a tax deductable……

]]> By: College Age Finance » links for 2006-12-10 http://www.getrichslowly.org/blog/2006/12/08/tax-tips-for-tykes/#comment-27476 College Age Finance » links for 2006-12-10 Sun, 10 Dec 2006 14:52:54 +0000 http://www.getrichslowly.org/blog/2006/12/08/tax-tips-for-tykes/#comment-27476 [...] Get Rich Slowly » Tax Tips for Tykes (tags: tax investing) [...] [...] Get Rich Slowly » Tax Tips for Tykes (tags: tax investing) [...]

]]> By: College Age Finance » links for 2006-12-09 http://www.getrichslowly.org/blog/2006/12/08/tax-tips-for-tykes/#comment-27077 College Age Finance » links for 2006-12-09 Sat, 09 Dec 2006 20:16:07 +0000 http://www.getrichslowly.org/blog/2006/12/08/tax-tips-for-tykes/#comment-27077 [...] Get Rich Slowly » Tax Tips for Tykes (tags: tax investing) [...] [...] Get Rich Slowly » Tax Tips for Tykes (tags: tax investing) [...]

]]> By: W.C. Varones http://www.getrichslowly.org/blog/2006/12/08/tax-tips-for-tykes/#comment-26678 W.C. Varones Fri, 08 Dec 2006 23:55:37 +0000 http://www.getrichslowly.org/blog/2006/12/08/tax-tips-for-tykes/#comment-26678 Good question, Mark. The wash sale rules apply to <i>losses</i>, not gains. From <a href="http://www.irs.gov/publications/p550/ch04.html#d0e12561" rel="nofollow">IRS Publication 550</a>: <blockquote>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: 1. Buy substantially identical stock or securities, 2. Acquire substantially identical stock or securities in a fully taxable trade, or 3. Acquire a contract or option to buy substantially identical stock or securities. </blockquote> But if you're still worried about it, just invest the proceeds in a different stock or fund. Moving from a single stock to an index fund has the added benefit of diversification! Good question, Mark.

The wash sale rules apply to losses, not gains.

From IRS Publication 550:

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:

1. Buy substantially identical stock or securities,

2. Acquire substantially identical stock or securities in a fully taxable trade, or

3. Acquire a contract or option to buy substantially identical stock or securities.

But if you’re still worried about it, just invest the proceeds in a different stock or fund. Moving from a single stock to an index fund has the added benefit of diversification!

]]> By: Mark http://www.getrichslowly.org/blog/2006/12/08/tax-tips-for-tykes/#comment-26564 Mark Fri, 08 Dec 2006 20:16:36 +0000 http://www.getrichslowly.org/blog/2006/12/08/tax-tips-for-tykes/#comment-26564 Um -- this <i>sounds</i> like good advice, but won't selling the stock and immediately buying it back trigger the wash sale rule and defer the gain? I would think you would need to wait at least 30 days before the buyback (and make sure not to buy any of the stock for 30 days before, too, since the rule works both forward and backwards in time), but I could be wrong. Is there a CPA in the house? Um — this sounds like good advice, but won’t selling the stock and immediately buying it back trigger the wash sale rule and defer the gain? I would think you would need to wait at least 30 days before the buyback (and make sure not to buy any of the stock for 30 days before, too, since the rule works both forward and backwards in time), but I could be wrong.

Is there a CPA in the house?

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