Re: Can I offset a sort term loss against a dividend

From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Can I offset a sort term loss against a dividend
Date: Sun, 30 Aug 1998 08:07:50 -0400

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>If I sell a fund NOW (which was bought in Nov 97)  at a loss can I use the
>dividends from other stocks to offset the loss.

It depends.  A short-term capital loss is first netted against
short-term gains.  The result of that is then netted against net
long-term gains.  If the result of all that is a loss, then the first
$3,000 of loss is taken against ordinary income, with the rest carried
over to next year.

>I plan to sell the fund, take a loss and buy back the fund.

Remember to wait 31 days before doing so.  If you buy the security
back from 30 days before the loss sale to 30 days after the loss
sale, the wash sale rule comes into plan and disallows the loss.
The disallowed loss is then added to the basis of the "replacement
shares", so it is not lost forever.

Rich Carreiro
rlcarr@animato.pn.com
P5-100/RedHat Linux 4.1



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