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Hi,

I have a question about avoiding the wash sale rule regarding tax losses.

First, I had no trades for more than 30 days prior to my first tax loss sale.

So, I sold 500 shares of ABC on June 9th, 2008 (and realized a tax loss).

Next, I sold 1000 shares of ABC on June 20th, 2008 (and realized a tax loss).

I would eventually like to buy 1500 shares of ABC to return to my initial position size.

Am I allowed to buy 500 shares on July 10th, 2008 (one month after the first sale) and another 1000 shares on July 21st, 2008 (one month after the second sale)? Or do I have to wait until July 21st, 2008 to buy all 1500 shares (one month after the final sale)?

I'd appreciate the help. Thanks!
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Am I allowed to buy 500 shares on July 10th, 2008 (one month after the first sale)

No. They will wash against the June 20 sale. If you bought 1500 shares on that date, 1000 would wash against the June 20 sale, but the June 9 loss would be OK.

Or do I have to wait until July 21st, 2008 to buy all 1500 shares (one month after the final sale)?

Given your sale dates, that's what you'll need to do to avoid wash sale problems.

--Peter
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Thanks, Peter. I appreciate your help.
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