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Author: zualala Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123035  
Subject: ? Wash Sale Date: 9/19/1999 4:13 PM
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Does the wash sale rule apply when you sell all shares (some at a loss) purchased in different lots, of the same stock, if some of the lots were purchased within the 30 day period before the total liquidation of all of the position.

For Example:
Sept. 1) Bought XYZ 100 shares at $10.00 = $1000
Sept. 3) Bought XYZ 100 shares at $6.00 = $600
Total = $1600

Sept. 15) Sell XYZ 200 shares at $8.00 = $1600

Loss on first lot = $400
Gain on second lot = $400

I have sometimes used this method to recover losses from an ill-timed initial entry. Do the wash sale rules apply here, no matter how many lots were purchased to average down, and then all of the position was sold? I know I must claim the gain on the second lot, but will I be allowed to claim the loss on the first lot.

If I repurchase this security within 31 days will the loss be disallowed and the wash sale rule apply?

Thanks in advance for any offered help.

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