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URL:  http://boards.fool.com/kmmodlish-quotfirst-of-all-i-know-no-one-that-13021637.aspx

Subject:  Re: Wash Sales & IRA Accounts Date:  7/28/2000  12:20 PM
Author:  JAFO31 Number:  38138 of 123001

kmmodlish: "First of all, I know no one that will claim to have all the answers to this question. Even the IRS would come to different conclusions within their own organization.

But, if the IRS claimed this example to be a wash sale, when then, would they claim that the original loss could be claimed? And on what shares? The loss will NEVER be realized within the IRA account regardless of when that stock is sold. So it goes back to the original loss. There is no provision in the wash rules to allow a loss on an "original" wash sale to fall back to these original shares. It either wasn't a wash sale to begin with (which is what I claim), or the loss never gets taken (which is absurd)."


Bob78164: "If the IRS concludes that the transaction is a wash sale, then as you note, the loss would be lost forever. That's why the risk is so high. Characterizing the result as absurd seems to me an awfully thin reed on which to hang your hat. Even if I agreed that the result is absurd (and upon reflection, although the result is certainly harsh, I wouldn't call it absurd), it's not as though there aren't other provisions of the Code that compel absurd results. --Bob"

I agree with the last two sentences of Bob's post. I admit that I have done no research on this topic, but why can the basis