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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.

Marv

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