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Financial Planning / Tax Strategies


Subject:  Re: Wash sales between taxable and tax-deferred Date:  11/28/1999  11:04 PM
Author:  Bob78164 Number:  21971 of 127753

elibortPrairiela writes (in part):

I'm surprised we've never seen a reported case directly on point. The statute (Int. Rev. Code sec. 1092) says that if 'the taxpayer has acquired' the same stock that he's claiming a loss on, then he gets no deduction.

I reply:

The technical argument, it seems to me, is that "the taxpayer" hasn't necessarily acquired the stock by instructing the IRA custodian to purchase it. As I recall, IRAs are structured as trusts, and there are many circumstances in which a trust and its beneficiary are treated as different entities. Like Roy, I wouldn't care to litigate with the IRS whether this is one of those circumstances, though. --Bob
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