june selling for tax loss benefits., page-2

nursery

You said: " With the tax office saying they are looking closely at wash sales it means that it can not be a sell and buy straight back."

This depends on facts and circumstances. If your intention is to sell and buy back at a lower price and you actually achieve this, it is unlikley that the ATO would be able to do anything. Your in a stronger postion if you buy back at say 30% to 40% less and/or if you have a history of selling to buy back at a lower price.

To attack a wash sale the ATO has to apply Part IVA of the Income Tax Assessment Act 1936 to the tax benefit. They will only do this if there is enough tax at risk and it would have to be a strong case for them. A trader should not have anything to fear. An investor might, but they would have to have avoided (deferred) a significant amount of tax.

This is not tax advice. All care and no resonsibility.

Regards,

ProjectX