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Suppose I have 100 shares of XYZ in my regular brokerage account. I bought it at $50, and it's now at $40. I'm planning to hold it long term, and at $40 it's a bargain, IMO.

Here's my "bright idea": I "move" the stock into my IRA by selling it in my regular account, and immediately buying the same number of shares in my IRA. I get to use the $1000 loss in my regular account to offset other gains, and whatever it gains over $40 is tax deferred in my IRA.

Too good to be true, but I'll ask anyway. Is this a wash sale? If so, that just means that if I do this, I can't take the loss, right? Would it make a difference if I bought the new shares of XYZ in the IRA *before* selling them in my regular account?
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