Ghost says: Second, did you close out your entire position in the stock prior to the end of the year and
then stay out of the stock for 30 days into the new year. For example, you sold all of a
particular stock on or before 12/31/1999 and didn't take a new position on or after
1/31/2000. If so, then any wash sales that occurred for that stock in 1999 are a moot
point--all capital losses that occurred in 1999 can be recognized on your 1999 tax
return...just like normal.

It is only necessary to be out of the stock for ANY 31 day period to "moot" all previous wash sale. Therefor to make sure there are none in the curent year stay out the 31 days to include 12/31/ If you didn't think of this until 12/31 your example is correct, but otherwise unnecessarily complicated and limiting. Ed