I am a pattern day trader, and I was wondering if wash sale rule would increase my tax. Other than no buying the same stock for 30 days, there is no way to avoid wash sale rule except for getting IRA account?This is my first year as a full time day trader and it will be my first year to pay income tax as well.A question on day trading and wash sale rule?
If your loss was disallowed because of the wash sale rules, add the disallowed loss to the cost of the new stock or securities. The result is your basis in the new stock or securities. This adjustment postpones the loss deduction until the disposition of the new stock or securities.
Read http://taxipay.blogspot.com/2008/04/list鈥?/a>A question on day trading and wash sale rule?
Investor status.
If you rebuy the stock, you trigger the wash sale rules.
Day Trader with Mark to Market election (which had to be done last April 15th for next year), no wash sale rule, but guaranteed audit.
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