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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: Re: Selling and Buying within an IRA Date: 12/1/1999 7:59 PM
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Bob78164:

<<<<TLS writes:

I have an IRA with stocks I purchased in May of 1998 I am thinking of selling some of the poor performing stocks that I have lost money with to date (KO, Boeing). If I sell and buy with in an IRA, what are the costs or tax ramifications? Since it is an IRA, can I buy and sell withinout it affecting my taxes?>>>

"I [Bob] reply:

Be careful. If you repurchase the stocks within 30 days of the sale, even within an IRA, there is a serious argument that the wash sale rule will prevent you from claiming the loss. Moreover, since the repurchase is in a tax-deferred account, you might never be able to claim the loss; at least under the usual situations in which the wash sale rule applies, the loss is merely deferred. This subject comes up on the Tax Strategies board about two or three times a month. --Bob"


Bob, I think you may have jumped the gun here. The original poster said that he held the stocks in an IRA, when/if he sells them for a loss (within the IRA) he cannot take the loss on his tax return for the year, so there is no loss to "wash" and he/she need not worry about.

The recurring dispute on the Tax board always seems to involve selling for a loss out of a taxable account and then repurchasing inside an IRA (or other tax benefitted account).

Just my $0.02. Regards, JAFO
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