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Subject:  Re: FIFO & Wash Rule Date:  7/8/2009  2:09 PM
Author:  edcosoft Number:  106461 of 131229

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.

O.KL. Your sale is NOT a wash sale because you waited 30 days.

But now I held more of this stock for more than a year.

When you sold the first batch you knew that it was over a year. Has nothing to do with the new purchase. I gather you are trying to avoid long term losses, but it doesn't make any difference. They will either offset gains this year, or become part of your $3,000 allowed ordinary income offset, or carry forward to offset loing term gains or short term gains, etc. The only dissadvantage would be if you had to use LTCL to offset LTCG instead of STCG.

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

Yes, It is necessary. The 30 day wait is between the date of selling and the date of buying, whether one preceedes the other. Has nothing to do with FIFO which establishes which shares you sold that might become a wash sale.

Sorry if I didn't understand your question.

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