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Author: edcosoft Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121313  
Subject: Re: Wash sales & IRAs Date: 3/16/2001 10:11 AM
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P.S. I do have a good, Foolish reason for wanting to make the sale-- I
got the stock in question by exercising ISOs, and the stock tanked.
Result-- I owed AMT for 2000, and I'll want to realize enough AMT
loss this year to get the money back in 2002. So I'm thinking I may
sell to realize the AMT loss, while maintaining some stake in the
company by buying in my IRA. But, of course, this is exactly the kind
of strategy that the Wash Rule was invented to block, so the IRS
probably wouldn't like it much...

Oh, well. I have until December to do this... I'll probably buy an
early copy of TurboTax this year, run the numbers, and see what to
do.


Why don't you just wait 31 days to purchase ian your IRA? Also, I presume you know that your AMT losses are limite to $3,000 by the Capital Loss Limitation so depending on the size of the loss and other LT P/L you might not recover as much AMT as you think. ed
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