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Author: JABoa Date: 3/24/01 10:44 AM Number: 48918
I think you are wrong on the wash sale rule applying on your hypothetical loss, since you are buying a different security. They are in the same line of work, but so what: Ford and GM both build cars but if you sold Ford at a loss and immediately bought GM, there is no wash sale there.

I'd sure like to believe that you're correct on this. However, I was told by my tax accountant that all passive S&P 500 Index funds are "substantially the same" and the wash sale rules do apply to them. Have you any personal audit experience on this?

The wash sale rule does not apply on gains. Your gain will be taxable.

That figures. The rules all work to the government's favor - not the taxpayer.

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