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The most recent FAQ info about the new super-long-term CG rate is almost a year old, and I wondered if any new info had popped up about this. When I first read it, it sounded like a good idea to recharacterize (wave the magic wand over) my gains on Jan 1. Unfortunately, those gains are nonexistent! :-) Is it true that if I fill out whatever forms are required to wave said wand, that I will be essentially lowering my cost basis for these stocks without being able to take the current deduction for the loss?

If so, I guess I need to guesstimate whether 20% of the gain (years down the road) from my original cost basis is better than 18% of the future gains from the Jan 1 2001 level, which is considerably lower. Ugh. :-)

What does a taxpayer need to do to accomplish the wand waving?

Thanks in advance for any advice or pointers,

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