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Greetings all,

I have a Wash Sales issue which I hope I can tap into the wealth of knowledge on this board. I was under the impression that you could not repurchase a stock which was sold for a loss until 31 days, simple enough. After TurboTax indicated that I might not qualify for losses due to wash rules, I had to research. Sure enough, the definition (as indicated here on the fool) of wash sales states it's BEFORE or AFTER, not just after!

None of the examples I have found from the IRS or TurboTax explains what to do if you purchase before the 31 days.

Hypothetical situation:

1 Mar 01: Purchase 100 shares XYZ for $50 = $5000
5 Mar 01: Purchase 50 shares XYZ for $40 = $2000
25 Mar 01: Sell 150 shares XYZ for $30 = $4500

From this example, $7000 was invested and only $4500 was realized, for a cap loss of $2500.

Can I claim this loss, or since I purchased within 30 days I have to eat it??? Many, many thanks in advance for any help.

(TurboTax says to change the basis and recalculate - I wonder why it just doesn't do it for you?)

Again, Thanks


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