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Financial Planning / Tax Strategies


Subject:  Re: Wash Sale Losses Date:  9/25/2001  2:39 AM
Author:  ptheland Number:  54203 of 127549

I had this same question when I worked on I wrote to IRS and got a written answer which I'll try to dig up and post here.

Investing in a stock you sell at a loss in a taxable account within 30 days does NOT create a wash sale if you repurchase the same stock within your IRA, was the answer we got. I'll see if I can find the letter.

I'm sure you're well aware that such written advice is not binding on the IRS. If it were a PLR (which I'm fairly sure it wasn't, as a PLR would have been widely circulated) it is binding only for the taxpayer to which it was issued. The best such a letter would do is get you out of any penalties, but not tax, if a court disagrees. Of course, its also possible that a court would agree with the letter, but they are certainly free to use their own judgement.

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