Selling loss and wash sale?

[ripvanwinkle]

Sadly, I've asleep at the wheel and have not watched my account all to well . Too busy with new girlfriend a new grand daughter. So now I going to sell some GE for a loss of $3000 for my taxes. What type/kind/sector stocks would not be considered a "like" stock so I avoid a wash sale penalty?

[clarkrl2]

Unless you have made some recent purchase of GE stock (I think even if it was through a DRIP this would count) or did some option trades on GE options I don't think the wash rule would apply. If you were purchasing shares through a DRIP or other means or doing some trading on GE options I think you need to see a tax consultant. www.sec.gov/answers/wash.htm

I am just giving an opinion. I am not a tax consultant so my opinion is probably not worth a whole lot. Good luck with your new girlfriend and grand daughter. Merry Christmas and happy New Year.

[Deleted]

Dec 20, 2018 22:59:28 GMT -5 ripvanwinkle said:

Sadly, I've asleep at the wheel and have not watched my account all to well . Too busy with new girlfriend a new grand daughter. So now I going to sell some GE for a loss of $3000 for my taxes. What type/kind/sector stocks would not be considered a "like" stock so I avoid a wash sale penalty?

Clark is partially correct. Unless you buy more GE at a time prior to 31 calendar days AFTER you sold the GE shares; you would not run afoul of the Wash Sale Rule (Trust me here I am an Active Trader so I run into this all the time).

As to the Options trading GE Options even after you sold GE Stock, would not trigger a Wash Sale; Unless one of those Options was assigned in a manner in which EITHER: You ended up having to buy shares of GE prior to 31 days After the Sale of GE stock, OR; provided a Sale of GE Stock at a Price Higher than you had previously sold GE stock for.

Wash Sales On Direct Options Trades {no stock trade}? Yes they do happen, but only if you Trade the EXACT SAME STRIKE, In the EXACT SAME MONTH which triggers a Gain in the same manner as in the case of Stocks.

[ripvanwinkle]

Been away from the computer for awhile. Thanks DI. That helps. The GE dividends are DRIP. I hope that doesn't negate me on loss selling. I don't plan on buying any more GE. It was good while it lasted.

[Deleted]

ripvanwinkle

As long as any Dividend Reinvestment happened AFTER 31 Calendar days transpired from the Loss Sales, you should be ok.

If a D.R.I.P. happened in that 31 day period, then you would be afoul of the Wash Sale Rule.

So say you sold GE on 9/17/2018 and you got a D.R.I.P. on 10/25/2018, you should be in the clear.

But if say you sold GE on 9/26/2018 and you got a D.R.I.P. on 10/25/2018; then you would be afoul of the Wash Sale Rule and any loss would be dis-allowed either in pendency or permanently; depending on the situation.

In Pendency: Loss is shifted in the form of cost adjustment {Higher} on one or more still existing lots of stock still held; and then later on in a sale event {so long as the Wash Sale Rule is not triggered} marked a beneficial against Gains at that time; thus lowering Taxable Income at that point.

Permanently: Stock position is totally liquidated, after the Wash Sale was incurred but before the dis-allowed loss could be re-captured via a "Clean" sale later on.

The Wash Sale Rule (and how it works) is one of the many, various reasons why the old saw goes "As Long As You Hold The Paper, Any Loss Showing Or Incurred, Is Never Really Permanent; Unless a Company Goes Bankrupt OR You Make The Loss Permanent By Setting Your Pants On Fire" And is also why Losses can end up being Accretive to the bottom line, in an outsized manner.

[ripvanwinkle]

Dec 27, 2018 17:08:58 GMT -5 @di said:

ripvanwinkle

As long as any Dividend Reinvestment happened AFTER 31 Calendar days transpired from the Loss Sales, you should be ok.

If a D.R.I.P. happened in that 31 day period, then you would be afoul of the Wash Sale Rule.

So say you sold GE on 9/17/2018 and you got a D.R.I.P. on 10/25/2018, you should be in the clear.

But if say you sold GE on 9/26/2018 and you got a D.R.I.P. on 10/25/2018; then you would be afoul of the Wash Sale Rule and any loss would be dis-allowed either in pendency or permanently; depending on the situation.

In Pendency: Loss is shifted in the form of cost adjustment {Higher} on one or more still existing lots of stock still held; and then later on in a sale event {so long as the Wash Sale Rule is not triggered} marked a beneficial against Gains at that time; thus lowering Taxable Income at that point.

Permanently: Stock position is totally liquidated, after the Wash Sale was incurred but before the dis-allowed loss could be re-captured via a "Clean" sale later on.

The Wash Sale Rule (and how it works) is one of the many, various reasons why the old saw goes "As Long As You Hold The Paper, Any Loss Showing Or Incurred, Is Never Really Permanent; Unless a Company Goes Bankrupt OR You Make The Loss Permanent By Setting Your Pants On Fire" And is also why Losses can end up being Accretive to the bottom line, in an outsized manner.

Ok, so how do I find out if or when GE or any other stock or fund is going to issue a dividend?

[Deleted]

 ripvanwinkle

You should be able to log onto your brokerage, navigate to the quote page for the stock in question, in one form or another there should be a Tab or Link to either CALENDAR or CALENDAR EVENTS (at Ameritrade the tab is called Calendar on the Quote page).

In that tab (or page if a link), it should show Calendar events usually separated into EARNINGS; followed by DIVIDENDS.

Under the Dividends section the information should be listed (again usually) as EX- DATE, RECORD DATE, PAYABLE DATE.

The Record Date generally is 2 days after the Record Date and the payable date is at a point after that usually 5 to 40 days after the record date (though I have seen 1 company which used to pay 90 days after the Record Date; BTW they are no longer around).

[ripvanwinkle]

Thanks. That helps.