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Financial Planning / Tax Strategies


Subject:  Re: Wash sales between taxable and tax-deferred Date:  11/27/1999  8:18 AM
Author:  HatchetJack Number:  21850 of 127519

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.

I believe (without the benefit of "cases" cited in earlier posts) that only taxable dipositions apply; the IRA purchase and sale don't constitute taxable transactions. If you sold out of the IRA postion two years later is anyone suggesting that the former "disallowed" loss in your normal brokerage account is then deductible?

Section 1091(a) of the Code provides, in effect, that a taxpayer cannot deduct any loss sustained from the sale or other disposition of stock if, within a period beginning 30 days before the date of such sale or disposition and ending 30 days after such date, the taxpayer has acquired (by purchase or by an exchange upon which the entire amount of gain or loss was recognized by law), or has entered into a contract or option so to acquire, substantially identical stock or securities. To the same effect see section 1.1091-1 of the regulations.
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