its called a wash sale and yes its still a rule, you are not...

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xbayrockx

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28/06/22

12:59

Post #: 62248062
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Originally posted by f100keptin: ↑

Correct Vein
I have always hated these last 2 weeks of June in the markets--many traders used to sell their losing positions to "crystallise their losses" for tax reasons --and very often immediately buy the same stocks back again in July.
Way back when I was young, they had a term for it--"bed+breakfast ?" I think or "wash &wear"? --or something similar.
The ATO and cracked down on it and it reduced a bit for some time, but that was BC (before computers +those f** bots were the main trading tool)--the paper records were easier to track for the tax sleuths----now --not so much.
The "sell in May and go away" saying was something of a self-fulfilling prophesy because of the tax angle and the much smaller market size then--but still shows up in the "seasonal ASX chart" I posted earlier.

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its called a wash sale and yes its still a rule, you are not supposed to sell and then re-buy for the sole purpose of the tax implication. they of course will know exactly the dates and times you sold and will be very privy to what people are doing, however it is obviously impossible for them to know your actual intent when selling and rebuying which is what matters,. for example it could have just been you thought the interest rate news from fed was gonna be bad so you sold, then it wasnt that bad so you re-buy

Last edited by xbayrockx: 28/06/22

HIO Price at posting: 56.0¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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