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Subject:  FIFO & Wash Rule Date:  7/8/2009  12:09 PM
Author:  brucedoe Number:  106459 of 132798

I have some stock that I bought in small amounts over a long period of time. The stock price is down more than 50% so I decided to reset my basis by selling some of the stock that I have held for over a year and then buy it back at a lower price racking up a long-term capital loss.

So I did this in steps using FIFO. Then when I wanted to buy the stock back, I waited for more than 30 days and bought back the amount of stock I had sold. fortunately the stock declined another couple of dollars by this time so I made bad a little of the loss.

But now I held more of this stock for more than a year. I plan to wait more than 30 days after buying the stock back before I sell some more on FIFO but is this really necessary?

Once I due sell that stock, I will wait more than 30 days before i buy it back.

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