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Financial Planning / Tax Strategies


Subject:  Re: simple tax question Date:  2/9/2013  5:03 PM
Author:  TMFPMarti Number:  117714 of 132878

This doesn't sound like a wash sale, I think it's 2 separate transactions.

As Sister Mary Severe often reminded, "Mind your antecedent." Since all wash sales are two (or more) separate transactions, what does "this" mean?

If you're referring to two transactions for the same stock, one in a taxable account and one in an IRA, there is indeed the possibility of a wash sale and a forever unrcognized loss. If you sell for a loss in the taxable account and buy the same stock in the IRA within the wash sale window there is a wash sale. The loss in the taxable account is not recognized and is totally useless in the IRA.

Since the basis of individual investments in an IRA is meaningless for tax purposes, even if you do create a wash sale involving a sale in the IRA it's moot.

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