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Financial Planning / Tax Strategies


Subject:  Re: I'm Impressed Date:  1/10/2011  6:38 PM
Author:  Bob78164 Number:  111913 of 123001

RV2000 writes (in part):

I put in a limit sell order for a stock on Dec 23rd. It traded on Jan 5 and settled on the 6th. I bought back in again on Jan 7th after a large decrease in price. Is this what I've heard called a wash sale? If I sell at a loss in Feb can I offset last year's gain against this year's loss next year? Or do I do it this year?

I reply:

Let me make sure I understand you correctly. On December 23, 2010, you placed a limit sell order for one of your holdings. However, the order didn't actually execute until January 5, 2011, which was your trade date. You then repurchased the stock on January 7, 2011.

You do not have a 2010 transaction at all, so this transaction w