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To: J. M. Blackburn who wrote (1882)	12/14/1997 10:56:00 PM
From: Bill Martin	Respond to of 3696

Re: if I FIRST make a purchase in an account which doesn't have to be reported and is an non-taxable event and THEN make a sale in a seperate taxable account, how have I violated the wash rule? First, I'm presuming that you're talking about selling at a loss -- if not then everything is moot and there's no problem. If you're selling at a loss though, here are exerpts from an old Lasser tax book: "Under the wash sale rule, your loss deduction is barred if within 30 days of the sale you buy substantially identical stock or securities ...." "The wash sale period is 61 days -- running from 30 days before to 30 days after the date of sale. The end of a taxable year during this 61 day period does not affect the wash sale rule." I doubt that whether you're buying into a tax free account makes any difference, but you may be correct. The issue of whether the IRS will find out about it spread across two accounts is separate from whether they'll nail you if they do find out. Good luck. Bill

To: J. M. Blackburn who wrote (1882)	12/15/1997 12:39:00 AM
From: Math Junkie	Read Replies (1) \| Respond to of 3696

Buying before selling does not protect you from wash sale rules. The rules apply if you bought from 30 days before to 30 days after the sale. As for buying in the retirement account and selling in the taxable account, I have no idea if this gets around the wash sale rules or not, but it sounds too good to be true.