Are there tax penalties for BUYING a stock then SELLING with in a few days then BUYING the same stock again?

Answers:1   |   LastUpdateAt:2012-10-25 18:34:03  

Question
dumitru
Asked at 2012-09-11 12:12:03
I am a novice in stock trading . I found a population that is in a constant roller coaster of ups and downs . Are there tax penalties ( or anyone else who needs to know about ) if I buy low sell high one day a couple of days later and then buy the same action again a few days after that when it falls to a minimum and continue repeating the same process if the pattern continues up and down ? I realize capital gains for short term trading about 35 % or so ... Any information would be helpful thanks .
Answer1toddAnswered at 2012-10-25 18:33:30
The problem will be that you must do if you set a loss on a trade. If you sell for a loss , and then buy back the position within 31 days, the sale will be considered a " wash sale " and the loss will be invalidated . Do some research on wash sales , there is more to it than my short answer here ...
Related Questions
1
  • Answer This Question:Are there tax penalties for BUYING a stock then SELLING with in a few days then BUYING the same stock again?