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Strategies & Market Trends : Buffettology

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To: Freedom Fighter who wrote (2589)	7/8/2000 1:09:58 PM
From: Shane M	Read Replies (2) of 4691

Off Topic - Wash Sale All, This is terribly off topic but I have a Wash Sale question that I can't figure out the answer to and was wondering if any of you have encountered. I just downloaded the IRS Publication 550, but can't find reference to this scenario. Here's the scenario. In taxable account I sold 100 shares of stock at a loss. On the same day in an IRA account I sold 100 shares in indentical stock at a loss. I can't find a distinction in the IRS examples between taxable and non-taxable accounts, but in this scenario can I repurchase 100 shares in my IRA within 30 days without voiding the loss in my taxable account? If not, would it not be most advantageous to repurchase in the taxable account to achieve the increased cost basis? Per publication 550: "A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you: 1) Buy substantially identical stock or se-curities, 2) Acquire substantially identical stock or securities in a fully taxable trade, or 3) Acquire a contract or option to buy sub-stantially identical stock or securities." If anyone has encountered this scenario I'd appreciate any comments. Thanks, Shane

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