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Author Topic: Is this legal?

F
  • Posts: 13
Is this legal?
OP: March 04, 2017, 12:00:00 AM
Let's say you have a ROTH folio account and a cash folio account.  If you post a note for sale for a very large amount from the ROTH account, and then purchase it from your cash account, you could effectively move as much money as you wanted into your ROTH account.  I'm guessing this is illegal somehow, but our tax system is so screwed up I thought I'd check!
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y
  • Posts: 182
Is this legal?
#1: March 04, 2017, 12:00:00 AM
It would only be a problem if they notice.

"Between November 24 and December 10, 1999, Moondra executed 56 wash sales in the securities of 12 different issuers between taxable and tax-sheltered accounts in which he had trading authority. These trades resulted in no change in beneficial ownership but created artificial losses of approximately $161,695 in the taxable accounts and artificial gains of approximately $161,695 in the tax-sheltered accounts. "

http://www.sec.gov/litigation/admin/34-48432.htm
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D
  • Posts: 67
Is this legal?
#2: March 04, 2017, 12:00:00 AM
You're asking the wrong people.  Ask those who will be defending your position.  Here's a google list of them...

https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=securities+defense+attorney&*

What you're asking has wash sale written all over it.
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  • *****
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  • Posts: 608
Is this legal?
#3: March 05, 2017, 12:00:00 AM
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b
  • Posts: 69
Is this legal?
#4: March 05, 2017, 12:00:00 AM
Self dealing in an IRA is illegal.
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H
  • Posts: 33
Is this legal?
#5: March 09, 2017, 12:00:00 AM
Not only is it illegal but this used to be done on the stock exchange by trading between accounts at different brokers. The beauty was if you picked a stock that wasn't heavily traded you could go back and forth 10 times in 1 might as long as no other bids or asks were showing on Level II.

Unfortunately, it is illegal and in addition (1) if the trade takes place more than 10% from that days range, you brokers compliance officer will call and probably cancel the trade and (2) those High frequency trading bots will pick off your trade before it makes it.

Oh those good old days!!!
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