The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Wash sales between taxable and tax-deferred||Date: 11/26/1999 10:57 PM|
|Author: TMFTaxes||Number: 21831 of 122004|
<<"This question concerns "Wash" sales of stocks between taxable and tax-deferred accounts:"
I don't see the problem with the IRA. It is neither a related person as defined under Section 267 or a taxable transaction. A wash sale results when a taxpayer sells stock or securities at a loss and within 30 days before or after the sale, buys, in a fully taxable trade, substantially identical stock or securities.>>
I believe that the IRA account CAN be considered a related person with a liberal interpretation of the law.
But more importantly, there are many court cases out there that say that if you have "control" of the account (as in a self directed IRA account) that the account will be treated as "yours" for purposes of wash sale (and other) rules. I'll be happy to provide some citations if you would like, Jack. Just let me know.
I, and many tax pros, believe that if you "comingle" transasactions in a taxable and IRA (or other) account that you could have some real problems. I would prefer not to step on Superman's cape for this issue...especially if the dollars are large.
Just my $.02
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