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Q: If I sold JDSU today (for a tax loss) and buy SDLI immediately, and let's assume the two companies merge next month (or next quarter). Do I avoid the wash sale or not?

I think by doing so the only 'risk' I have is that they don't merge and SDLI may drop further!?

Thanks

taxfool
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If I sold JDSU today (for a tax loss) and buy SDLI immediately, and let's assume the two companies merge next month (or next quarter). Do I avoid the wash sale or not?

Our general opinion is that if the merger hasn't proceeded to the point that it's a sure thing, the other company is not "substantially identical." You can get a more thorough discussion by typing "wash merger" in the search box above.

TMF ExRO
Phil Marti
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