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FIREPLACEFO writes (in part):

I am wondering if following instance is subject to wash sale or not. I bought ABC stock 100sh. at $21 on Many 1, 100sh. at $20 on May 15 and 100sh. at $17 on June2. And then sold all of them (300sh.) at $20 on June 25. Afterward, I bought again 300sh. at $17 on July 5. The reason I think this might be subject to wash sale rule is that I lost on first 100sh. stock and then I bought within 30 days.($20-$21)*100=-$100.

I reply:

I guess I'll break the bad news -- this analysis appears correct to me. You have a wash sale on 100 shares. I suspect that the Taxes FAQ has examples; perhaps even the very example you've given (in principle). --Bob
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