Mephistopheles

I like that nice Rockefeller reference

I don't see Buffett selling Apple, but then again he's done some dumb things in the past couple years, mainly selling WFC and COST. The WFC sell at over a decade low was just ridiculous. Normally I don't bet against Buffett but I bought up a whole bunch of Wells right when he was selling. As far as table pounding buys, who knows, maybe Charlie will convince him to invest in China? ATT might be a table pounding buy...

But Mel Watt's term ended, and Trump appointed Calabria who proceeded to do nothing. Mnuchin also did nothing. So it's a little rich for him to be writing a letter on how decisive he would have been. Well, he had the opportunity to place in somebody he wanted, and that person did nothing! Why did it take this long to write the letter after the SCOTUS ruling? Is it because the shares are so illiquid and it takes that long to accumulate a big position? lol, joking; not joking

Thanks for all the replies. So what I'm understanding is that if distribution > accounting profit, then that distribution is tax free. Will try to screen for more of these stocks and post them here if I find them.

@Gregmal what is the best way you recommend hedging? Buy the VIX? Buy S&P puts? I'm thinking instead of selling and going to cash (and paying taxes), it's better to buy puts and then write off the losses. I have never hedged, let alone shorted or bought puts ever so I am a newbie with this stuff.

Thank you! Will have to have you over for a beer

Let's say I want to generate income in my portfolio without paying dividend or income tax. How would one go about finding or browsing through companies that pay out "return of capital" dividends for which your cost basis goes down but you owe no tax on the income? I own some APTS and CLPR, also WMB which all are such. I was initially under the impression that this is only a feature of MLPs but I guess not. Would love to hear your thoughts on the subject. Context: I just signed a lease to move to NYC next week, so taxes have now become my immediate concern

It says you lose 3 months of interest if cashed before 5 years. I guess if you want cash equivalent locked up then it's fine. But even when pulling for par after 1 year, you will only get 9 months of interest.

What is expanded in this new definition of related parties? I think the difference is including "dependents". Spouse, retirement plans, estates and trusts I believe always counted towards wash sales. Including dependents is just stupid.

Nope. So that quote from the article doesn't make any sense. And why not free rent? It's about time that landlords start not charging for rent.

+1 If someone says the rules only apply to "acquisitions" not "sales" and then you point out where it says "sales" and then they revert back to it not applying to "sales of calls", the argument moves in circles. It's like that whack a mole game.

No animosity from me. It was a back and forth on the claims presented. Edit: And I love avoiding taxes as much as everyone else here. So I'd love to be wrong on the argument. But I simply find the argument flawed, as do Eric and others.

And that sale is referenced in Publication 550, from which I'll post again: You cannot deduct losses from ***sales or trades of stock or securities*** in a wash sale unless the loss was incurred in the ordinary course of your business as a dealer in stock or securities. A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you 1. Buy substantially identical stock or securities, 2. Acquire substantially identical stock or securities in a fully taxable trade, 3. Acquire a contract or option to buy substantially identical stock or securities, or 4. Acquire substantially identical stock for your individual retirement arrangement (IRA) or Roth IRA. For something to be a wash sale, there has to be a sale, you get that right?

Can't figure out if you are trolling or not, or if you think that options are not considered securities.

Sure it does. The wording says "sales of stock or securities" The call in step 4 would be considered a "security"

Well the name "sale" is in the term "wash sale" so that should be a good hint. But since you asked- From Publication 550: You cannot deduct losses from sales or trades of stock or securities in a wash sale unless the loss was incurred in the ordinary course of your business as a dealer in stock or securities. A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you 1. Buy substantially identical stock or securities, 2. Acquire substantially identical stock or securities in a fully taxable trade, 3. Acquire a contract or option to buy substantially identical stock or securities, or 4. Acquire substantially identical stock for your individual retirement arrangement (IRA) or Roth IRA.

You reconcile it by pairing the amount sold with the amount bought and ignoring the rest. So if you sold 100 shares at a loss and then buy 150 shares, 100 shares from the latter transaction gets paired with the 100 you sold at a loss. But it does. It clearly says options and stock is substantially similar. So, for this purpose it doesn't matter whether you are generating the loss from the sale of a call position or sale of stock. You also know that the 30 days is forward and backward looking. And it's not a covered call. It's a sell to close transaction by your own words. You're closing off a long call position. So I'm not sure what the confusion is?

The loss on the calls will be a wash sale since you would have bought the new shares within a 30 day period. The loss from the old shares get tied to the basis on the call. Then you buy the new shares and sell the call, and the loss on the call (including from the old shares) gets tied to the new shares. The 30 days is forward and backward looking.

In this situation, you're taking a loss on the call while still having the stock, and if it's all within 30 days then it would still be a wash sale, no?

@ERICOPOLYclutch move. I also happened to buy BABA options yesterday $300 strike Jan 2023

BTI @ 8.5% yield. Easy when borrowing at 1-2% from IBKR

This is nice but I was referring to having the background black and the font white. The bright screen from the white background is what causes the eye strain. Sites such as WSJ, Twitter, IBKR have that option.

Sanjeev, thanks for the updates. Appreciate your continued work with this site. Would it be possible to have a "dark" mode for the board? So that it's easier on the eyes. I'm not a software person at all, so I don't know if this is complicated or not, but just wanted to make a suggestion for a small improvement that I'm sure many will love.

I had a couple of pints of Guinness tonight. Cheers all!

I have a family member, who was earning more in UE last year (when enhanced UE was $600) then he did at his regular job. So when the regular job asked him to come back, of course he said no. And his job was a manager of a fast food restaurant. Think about it, a manager, and yet he was still collecting more in UE than he did through salary. So I am sure there are other people out there with the same economics with the $300 extra UE. Take that away and incentives will draw the people back to the jobs. On top of that for those getting a free ride without having to pay rent, you take that away as well and it will for sure force all these people back into the labor market.