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I recently posted this on the HG message board. I need help understanding how the wash sale rules apply to my positions in ASEI. Here is my situation;

5/05/2006 Bought 20 shares @ $81 (brokerage account)
6/26/2006 Bought 25 shares @ $57 (IRA)
7/27/2006 Bought 20 shars @ $54 (brokerage account)

All excellent purchases, I think you'll agree :)

Anyway, on 8/14, after the recent runup to $47, I sold the 25 shares in my IRA account to buy some BEBE.

8/14/2006 Sold 25 shares @ $47 (IRA)

My question is, can I still sell the 20 shares I bought on 5/05/2006 for a tax loss, or does the IRS view the sale I made on 8/14 as a sale of the shares I bought on 05/05 (First In First Out)?

My goal is to reduce my holdings in ASEI to 20 shares. I may be willing to completely eliminate my position is ASEI for 30 days if there is a tax benefit.
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