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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121597  
Subject: Re: Is this a wash sale? Date: 7/14/1999 10:42 PM
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[[Too good to be true, but I'll ask anyway. Is this a wash sale? If so, that just
means that if I do this, I can't take the loss, right? Would it make a
difference if I bought the new shares of XYZ in the IRA *before* selling
them in my regular account?

I reply:

There's been no definitive ruling, but many people think that there's a significant
risk this would be a wash sale. The effect would be to prevent you from
offsetting the loss against your capital gains, or deducting it from ordinary
income. Buying the new shares first will not help unless you buy them more than
30 days before your sale; the wash sale rule is written to guard against precisely
the strategy you suggest. --Bob]]

And I agree with Bob...as do many other tax pros. You could get hung up by the "related party" rules and/or the "control" rules. Either way, you would be running a risk. I prefer NOT to step on Superman's cape.

TMF Taxes
Roy
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