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Author: DARNIT Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121599  
Subject: No Wash Sale implications - right? Date: 12/6/2000 6:52 PM
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I've read many posts and the Fool tax articles - they are all very helpful
but
how about this for-instance:
All done in company 'XYZ'
Purchased on 10/9/98 and 11/30/98
Sold all for a gain on 2/9/00
Purchased a smaller amount again on 3/7/00 and 3/27/00

And as you can tell from the dates, that's about when the bottom fell out....

Can we now sell co 'XYZ', at a loss (it's still down drastically) to offset our gain in March?

And does the fact that we bought back in on 3/7/00 (we sold on 2/9/00) have anything to do with the equation?

I assume it would have if we had been initially selling for a loss....
Any and All help would be Very Appreciated!
Best Regards,
darnit
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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 42579 of 121599
Subject: Re: No Wash Sale implications - right? Date: 12/6/2000 7:31 PM
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DARNIT: "I've read many posts and the Fool tax articles - they are all very helpful
but
how about this for-instance:
All done in company 'XYZ'
Purchased on 10/9/98 and 11/30/98
Sold all for a gain on 2/9/00
Purchased a smaller amount again on 3/7/00 and 3/27/00
And as you can tell from the dates, that's about when the bottom fell out....

Can we now sell co 'XYZ', at a loss (it's still down drastically) to offset our gain in March?"


Yes, assuming that you then wait at least 30 days after the date of sale before repurchasing.

"And does the fact that we bought back in on 3/7/00 (we sold on 2/9/00) have anything to do with the equation?

I assume it would have if we had been initially selling for a loss...."


2/9/00 sale irrelevant for these purposes because it was a gain.

Hope this helps. Regards, JAFO



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Author: DARNIT Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 42599 of 121599
Subject: Re: No Wash Sale implications - right? Date: 12/7/2000 7:20 AM
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JAFO -
thanks very much for the reply - It did help!!!

I'm also wondering, if you did want to buy back stock before 30 days are up, could you do so in a Roth IRA?

Regards,
darnit

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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 42604 of 121599
Subject: Re: No Wash Sale implications - right? Date: 12/7/2000 12:07 PM
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DARNIT: "JAFO - thanks very much for the reply - It did help!!!"

Your welcome.

"I'm also wondering, if you did want to buy back stock before 30 days are up, could you do so in a Roth IRA?

That is the $64 question. If you run a search you will find some interesting reading. There is no definitive answer, as far as I know, and the resident pros (of which I am not one) disagree. I believe that it would still be wash sale, and IIRC, TMFTaxes and several of the other resident pros believe similiarly. At least one of the resident pros (HatchetJack, maybe) believes otherwise.

Regards, JAFO






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