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Author: RooCat Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123143  
Subject: Re: Wash Sale in Reverse? Date: 3/18/2000 9:08 PM
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Do the IRS rules pertaining to wash sales also apply in reverse, partically as relates to LT vrs ST capital gains?
For example, On May 1 I purchase 100 shares ABC at $10. On November 1 I sell those 100 share at $15. Within 30 days, on December 15 I repurchase 100 shares of ABC at $17. Does the wash sale rule allow, or maybe even compell, me to claim the $2 per share increase as current income, while allowing the cost basis to remain at $10 for LT capital gains consideration?

Wash sale rules only apply to losses. Since you sold at a profit, the wash sales rules do not come into effect. You have a short term gain from May 1 thru November 1. New transaction holding period started December 15.
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