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New Doesn't the "ex-dividend" address this particular point?
Ben writes:

How does this trick work? Quite easily. Remember what I said about companies that pay dividends? When the company pays dividends you get dividends and a corresponding loss of stock value? So what happens if you buy a stock just before it pays dividends, then sell it right after? Right! You get money tax free. And you also get a corresponding capital gains loss. The loss can now be used to offset some other capital gain. Wash, rinse, and repeat as needed to offset any inconvenient capital gain that you might have taken...

Emphasis added.

As I understand things, e.g. from [link|http://www.ex-dividend.com/exexample.html|here] you only get the dividend if you're the owner of record before the "ex-dividend" date - on the order of 30 days before the dividend is paid. Since you don't get the dividend, the ex-dividend stock price is less. If you sell your stock during the ex-dividend period, you owe the new owner the dividend.

Since there's the risk of the stock value changing during the 30+ day ex-dividend period, it doesn't seem to be a way to "get money tax free".

It seems as if your arrangement depends on being able to rapidly turn-over the stock. How does the ex-dividend restrictions fit into your argument?

Thanks.

Cheers,
Scott.
New Nope
As long as you buy before the ex-dividend, and sell afterwards, you get the dividend and take the corresponding loss. Even if you held the stock only for an afternoon and morning.

Because of bookkeeping getting confused, the dividend might get sent to someone else who then sends it to you, but you are the one who gets the dividend and takes the capital loss.

Cheers,
Ben
"good ideas and bad code build
communities, the other three combinations do not"
- [link|http://archives.real-time.com/pipermail/cocoon-devel/2000-October/003023.html|Stefano Mazzocchi]
     Stimulus? Dividends? - (mhuber) - (9)
         Re: Stimulus? Dividends? - (JayMehaffey)
         Well, take Microsoft. (Please! :)) - (a6l6e6x)
         What do dividends have to do with company profitability? - (boxley)
         I have been thinking about this one - (ben_tilly) - (4)
             With _very_ light editing: submit for publication - (kmself) - (1)
                 Thanks for the compliment - (ben_tilly)
             Doesn't the "ex-dividend" address this particular point? - (Another Scott) - (1)
                 Nope - (ben_tilly)
         A twist: - (mhuber)

is there more coffee... can I have another cup... you wanna cup I can make some more... I have alot... I mean I have this pot here... but its almost gone and its been sitting there for 10 minutes anyway... I should make more... did I ask if you needed coffee??? do you??? need coffee I mean...
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