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Author: kickim1 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121592  
Subject: Possible write-off? Date: 4/13/2000 6:55 PM
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I buy 100 shares of XYZ at 40

Stock drops to 20

I buy 100 more shares of XYZ at 20

If I sell 100 shares of XYZ at this point, can I specify for tax purposes that I sold the first lot and take the write-off? If so, do I have to wait 30 days from the second purchase to do so to avoid the wash sale?

Thanks
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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: 34276 of 121592
Subject: Re: Possible write-off? Date: 4/13/2000 7:25 PM
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kickim1: "I buy 100 shares of XYZ at 40

Stock drops to 20

I buy 100 more shares of XYZ at 20

If I sell 100 shares of XYZ at this point, can I specify for tax purposes that I sold the first lot and take the write-off?"


Subject to next question, yes you may specify, but FIFO is the default if you do not specify.

"If so, do I have to wait 30 days from the second purchase to do so to avoid the wash sale?"

Yes, (and, IIRC, actually thirty-two days from the date of purchase or thirty-one days after the date of purchase --- wash sale is triggered if purchase is made with the 61 day window described as 30 days before sale + day of sale + 30 days after the day of sale).

One of the resident pros will correct me if I am incorrect, but I suspect that they have their heads down for the final push to 4/17/00.

Hope this helps. Regards, JAFO




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