[[I was ready to sell a position (IP) in my taxable account at a loss for the tax benefit. The I looked and saw that IP would be a selection for the RP4 portion of my ROTH IRA portfolio. How do I report the IP sale on my tax return? I will certainly be in a wash sale position.]]In my opinion, you DO have a wash sale...even though the purchase will be in a "different" account. Other professionals may differ in this opinion, but based upon my research I believe that I'm on pretty solid ground. As far as reporting, that's a problem. In theory, you would have to adjust the basis of your IP in your IRA account, and you would NEVER receive the benefit of the loss in your taxable account. A real problem. What to do? Since you have already messed up your portfolio with this transaction, you may consider buying the IP in your taxable account, keeping the wash sale in your taxable account, and eventually recognizing the loss in your taxable account. Remember that the wash sale rules don't apply in your IRA account, since losses aren't recognized. So if you have wash sale problems, keep 'em in the IRA account...and keep 'em away from your taxable account.You've still got time to make the appropriate correction. Don't dawdle.TMF TaxesRoyWant to learn more about taxes and investing? Then we have a deal for you!! The Motley Fool Investment Tax Guide is now available through Fool Mart. Be the first one on your block to own this masterpiece. There is still time available to do that tax planning (and tax saving) before the end of the year. So just click on this link (http://www.foolmart.com/market/product.asp?pfid=MF+013+I) to read more about this amazing collection of tax information. (Apologies for the shameless plug…but it is a pretty good book…if I do say so myself). In addition, if you would like to visit the Taxes FAQ (Frequently Asked Questions) area, click on http://www.fool.com/school/taxes/taxes.htm and you'll be right at the home page. Pay special attention to the "archives" section. Check it out. Finally, if you need to get to the IRS web site, click on http://www.irs.ustreas.gov to go directly there.
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