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I just read the chapter in the Fool book the nice folks at TDWaterhouse gave me. I also downloaded the IRS form 550 from the IRS site.

First: The Fool article indicates you can close out your position in a stock for 30 days then not have to worry about all those wash calculations. Just figure gains and losses as you normally would. But I could not find anything in Form 550 which specifically allows this. How can this be verifed?

Second: After the thirty days, can you buy back into the stock before the end of the tax year and still avoid the calculations. Or do you have to stay out of the stock until next tax year? Again, I could find nothing specific about this in Form 550.


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