Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I'm familiar with the basic rules of a wash sale and I've already gone over the Tax FAQ. I'm wondering if this trick is legal.

JDSU is acquiring SDLI, therefore the two stocks track each other relatively closely. If I have an unrealized loss in JDSU, could I switch to SDLI immediately after selling JDSU and still avoid the wash rule? Will it matter if the merger is completed within 30 days of the sale? I'm wondering if these stocks are substantially different investments in the eyes of the IRS.


Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.