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Subject:  Re: Wash Sale Losses Date:  9/26/2001  12:01 AM
Author:  acm4tax Number:  54231 of 128277

This is the post I found about a potential wash sale being deemed not so when the repurchase is in a trust account such as a 401(k), but I'm almost certain I have one that is regarding IRA's also. As was mentioned a couple of posts ago, this interpretation can be disputed by IRS in an audit. But having something in writing from IRS will prevent them from assessing penalties even though you may still have to pay the tax and interest.

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This would not be considered a wash sale because the 401k is considered a seperate entity from you personally. There is no repurchase by you and you do not own the newly purchased stock the 401k (trust) does. You would report the sale on Form 1040 Schedual D as you normally would and recognize the loss.


Your Question Was:
Is this a wash sale? I had on July 1 a 401k account with $5000 in it and a regular non-tax deferred account with 100 AMZN. I sold AMZN for a loss and bought it in the 401k account on the same day. Is this a wash sale?

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