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1) If a wash sale occurs, all is not lost -- the loss, while not immediately deductible, is transferred to the stock that was puchased within the 30-day period. The loss goes to raise the basis of the new stock -- so when you finally sell the "new" stock, you report a higher basis. That way, if the stock is sold for a gain, the gain is smaller; if sold for a loss, the loss is greater.

2) All this "wash sale" bookkeepping is unnecessary if all the stock is sold off during the year and you have none of the stock of the "wash sale" company at the end of the year. If you are a pure daytrader, this is the situation you should be in at the close of business on the last trading day of the year. That way, all losses are FULLY deductible for that tax year.

3) Another "wash sale" question : If a stock is sold for a loss in your regular trading account, and you buy the same shares within the 30-day period in your IRA Rollover Account, is this a wash sale ?
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