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Author: 1000nam One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121316  
Subject: Wash Sale between IRA and non-IRA Date: 8/17/1999 11:01 AM
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I am planning to "switch" some of my stock holdings between my IRA and traditional brokerage accounts. I will sell some dividend paying stocks from my traditional account and buy it in my IRA and sell some non-dividend paying stocks in my IRA and but it in my traditional account. I will then set up DRIPS in my IRA to simplify my recordkeeping and taxes.

If I execute my pair of trades for the same stock on the same day across the IRA and traditional accounts, is it considered a wash sale?

If it is indeed a wash sale, how is the basis adjusted in the case of the stock sold from the traditional account? The replacement identical security is now in the IRA, where there basis is of no consequence.

In the converse case, when I sell a stock from the IRA, does the basis of the shares I purchase in my traditional account have to be adjusted? That may be a problem as I don't even know the basis of most of the stocks in my IRA.

Thanks for your help.
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