When you hold stock it is important to have an understanding of wash sales. If you have a wash sale, you must postpone the recognition of a loss until you completely divest yourself of the security. If you purchase or repurchase it or something "Substantially identical" within 30 days before or after the sale that produced the loss, you cannot claim the loss immediately, it will be used to adjust the cost basis of the repurchased shares.

This is a very comprehensive article discussing wash sales that I thought some of you might be interested in. If you are trading options, pay attention to that topic discussed at the end of the article.

Wash Sale Trap-What is "Substantially Identical"?

bivio does not, at this time, automatically determine whether or not you have triggered a wash sale. If you have, let us know at support@bivio.com so that we can help you determine the adjustments that might need to be made to your records so that your tax reporting will be correct.


Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio


Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe