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Suppose the following transactions take place (for simplicity I am ignoring commissions):

I buy 100 shares of MSFT @ 100 on 2/1/2000

I buy 100 shares of MSFT @ 100 on 2/2/2000

I sell 100 shares of MSFT @ 99 on 2/3/2000 but I identify the shares sold as the ones on 2/2/2000
(this is a loss of $100)

Is this a wash sale? (i.e., my question is - can you have a wash sale because of shares you bought before the ones involved in the sale transaction?)

If so, then the holding period of the shares I purchased on 2/1/2000 would be moved up to 2/2/2000, correct?

Carl Erikson

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