30-day Wash Rule
Oil is up over $60, Wall Street was slow on Tuesday with little economic news and Black Friday is nearly upon us (shopping Black Friday, not Wall Street Black Friday). These are not all necessarily correlated in any way, but that is the economic news for the day. Trading of stocks is typically low before Thanksgiving and even slower on the half-day the stock market takes on the Friday following Thanksgiving.
Remember the 30-day wash rule. If you have stock that are down now is the time to harvest that loss. It can be used as a loss on your tax return for 2006 (up to $3,000 each year and it can be rolled over from previous years). Just sell a stock that is negative for you and wait 30 days. After the 30 days you are allowed to buy that stock back and still take the loss on it for this year’s tax return.
Written by Nagel on November 22nd, 2006 with
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