The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Wash Sale Losses||Date: 9/26/2001 12:01 AM|
|Author: acm4tax||Number: 54231 of 121219|
This is the post I found about a potential wash sale being deemed not so when the repurchase is in a trust account such as a 401(k), but I'm almost certain I have one that is regarding IRA's also. As was mentioned a couple of posts ago, this interpretation can be disputed by IRS in an audit. But having something in writing from IRS will prevent them from assessing penalties even though you may still have to pay the tax and interest.
NOTE: Our response to your tax law question appears below. If you have additional questions on this or other general tax law topics, please return to our web site at: (http://www.irs.gov/taxlaw) to submit it. Please do not use your "reply" button to send a follow-up question.
This would not be considered a wash sale because the 401k is considered a seperate entity from you personally. There is no repurchase by you and you do not own the newly purchased stock the 401k (trust) does. You would report the sale on Form 1040 Schedual D as you normally would and recognize the loss.
Your Question Was:
Is this a wash sale? I had on July 1 a 401k account with $5000 in it and a regular non-tax deferred account with 100 AMZN. I sold AMZN for a loss and bought it in the 401k account on the same day. Is this a wash sale?
IRS forms and publications may be accessed on our web site at the following address: http://www.irs.gov/forms_pubs/index.html or ordered through our toll-free forms line at 1(800) 829-3676 which is available 24 hours a day, 7 days a week, with 7-10 days delivery time.
We are interested in your opinion and providing the best possible service to you. Please take a moment to answer our survey at:
This answer is based on our understanding of the facts you presented in your question. Omission of facts may affect the answer given.
Here's a tip for navigating the IRS homepage. Use the "search" button at the bottom of the web page. Enter key words or phrases when the entry box comes up. It could help you find your answer immediately.
EMPLOYEE ID: 93-02429 Mr. Robinson Tel.:(800)829-1040 msg#: 649600
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|