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: John Liu who wrote (1739)	1/6/1999 10:33:00 AM
From: Colin Cody	Read Replies (2) of 5810

John, That answer is UNCLEAR. IMO the answer is NO, you lose the loss, basically PERMANENTLY. Permanently, because the only way to get a deferred wash-sale loss is to dispose of the new stock in a fully taxable transaction. Buying the new stock in a tax deferred/tax free vehicle like a retirement plan means you'll likely never get the loss! Other people say that since THE LAW specifically states that doing what you suggested, but with a PENSION PLAN is a wash-sale, that that means using an IRA is OKay. Their argument is that if Congress meant for wash-sale to apply to a re-purchase by your IRA, they'd have specifically said so. In the actual it says buying back in a PENSION PLAN controlled by the seller of the stock, is a wash-sale. IMO that's a very weak argument, but those proponents are sticking by their guns. Colin

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