got into FE last feb, thought it was a 'deal' but its been a slow mover ever since, hell it dropped a lot, clearly FE is a great stock for the long term, but I need shift some money around, and I need the tax write off, anyone else feel the same or disagree with a move like that, I think there is more money to be made in other equities at this point in time
I agree with you about the 30 day wash rule.
I have a related question though... if you sell a stock at a loss and then before the 30 days are up you buy call options on the same underlying company you sold the shares in can you claim the loss on the stock sale? What about if you sell existing options then buy new options on the same company with a different strike or expiry (for example as a rollover on a play)?
Scrooge - you are simply wrong re the Wash Sale rules and it's apparent you don't understand it as well.
I hold a Series 7 license, I'm entrusted to invest/trade other people's retirement funds, and aside from two IRA's, I have a personal cash account with margin and the point is I understand financial services better than most.
ALL realized losses are considered wash sales (thus disallowed) if the same security (or something equivalent) is bought back within 30 days of being sold.
Phone the IRS, as I have done, and discuss it with them.(800-829-1040) Ask them about day trading the same stock and how to report it.
You can trade all day long with either profits and losses in a stock, all of which is reported on your schedule D. The wash sale rule only applies as you get into December, because the IRS doesn't want people taking net losses at year end, only to buy it back in January of the next tax year. That's the whole purpose of the wash sale rule.
You bought last Feb., so youve gotten a couple of dollars in div. Your in @ $39, youve held this long through the LONG down trend and now it looks like FE is on a up trend, why sell.
Its still near its 52 week, low PE, high yielder and IMHO, alot of the unknown is gone....merger is approved and most analysts are saying 2011 will be a good year for the market.
Selling for a tax loss makes 0 sense to me. Why does it make sense to try and off-set a gain. Stay long.