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Subject:  Re: Wash sale question Date:  5/24/1999  10:10 PM
Author:  TMFTaxes Number:  15688 of 123001

[[I gave shares of Intel stock to my church last year. I want to give the rest of my
Intel stock later this year. I still want to own Intel, but in my IRA account, so I
am going to buy some more some time this year. Does the wash sale rule apply
when I am giving away the stock, or just when I sell it?]]

Only when you sell the shares...and only when the shares are sold for a loss. The was sale rules only apply to losses where you make yourself "economically whole" by buying additional shares of the same stock.

[[ Is there anything special I
need to watch out for?]]

Well, you might want to read up on the Wash Sale rules AND the rules regarding the charitiable contribution of qualified stock to a qualified charity. Both of those issues are discussed in both the Taxes FAQ area AND the TMF Investment Tax Guide. So check out the Taxes FAQ area and read about other concerns on BOTH issues.

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