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<< Is there a definition of "substantially identical property" somewhere? Suppose I have an account that contains 100 shares of Yahoo! and has been held long term. However, suppose I also want to actively trade in this account and I short 500 shares of Yahoo! and then close this position a day later. Is this considered a "constructive sale" even though in my mind I am not touching the original 100 shares during this transaction? Can I "specify" that these 500 shares are completely different than the 100 shares of YHOO that I originally purchased several years earlier? >>

I'm not quite sure what the question is here. If you're asking "Can I specify the shares to be sold?" the answer is "yes." If you're asking whether the wash sale rules are affected by the fact that you own shares other than those involved in the wash, the answer is "no."

If you're asking something else, please clarigy.

Phil Marti
Tax Preparer

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