Income Taxes and Record Keeping ( tax ) Message Board

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Strategies & Market Trends : Income Taxes and Record Keeping ( tax )

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To: Gorak Shep who wrote (3082)	3/21/2000 11:53:00 PM
From: Dan Duchardt	Read Replies (1) of 5810

Gorak, You make your latest argument turn on using the sales proceeds in the subsequent buy as the definition of replacement. This is unjustified. If I sell a position for a loss in one brokerage account (non-IRA) and buy it back with cash separate and already in a second brokerage account (non-IRA) within 30 days, this is still a wash sale. Of this I have no doubt and I suspect you would agree. So the argument you make here is without merit. I anticipated this rebuttal, and started to explain it away in my previous message, but thought it was a bit extraneous to the central point. I won't belabor it, but the distinction is that I can freely move funds from one non-IRA account to another. The fact that I might use funds already in place in another account without actually transferring funds, or even buy replacement stock before I make the wash sale is a cash flow issue. The fact that I cannot move funds between an IRA and a non-IRA is a cash flow barrier. The details of the argument would take some time, but there is clearly a distinction. As you have closed noting that Kaye Thomas has spoken to the issue, so will I. I yield to Kaye's expert advice. Dan

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