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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (5770)	2/24/2023 4:13:13 PM
From: Paul Senior	Respond to of 5810

Yes. Otherwise everybody would sell their taxable account losers and be able to immediately/30 days buy the stock back in an IRA/Roth. Yes, but. A rule violation yes (imo), but maybe not triggered. That is, I'm not convinced the brokerage computers are set to deal with the issue that's between taxable and non-taxable accounts. No problem for them, in my opinion/experience, if the wash sale is triggered in taxable account with the sells/buys being made only in that account. I'm no wash sale expert nor tax advisor. Elroy, you know me by now: I have opinions, I state them, and I'm wrong a lot. 'Twere me, supposing it's not a humongous amount of money involved, I'd ignore it as a problem: the broker catches it, they catch it. If not, then not.

To: Elroy who wrote (5770)	2/24/2023 8:43:54 PM
From: Investor2	Respond to of 5810

Does buying a stock within 30 days in a retirement account trigger a wash rule violation of a trade in a regular account? Yes, that's what I've heard. Best wishes, I2

To: Elroy who wrote (5770)	2/26/2023 1:33:20 PM
From: TheNoBoB	Read Replies (2) \| Respond to of 5810

Does buying a stock within 30 days in a retirement account trigger a wash rule violation of a trade in a regular account? The IRS, in Publication 550, very clearly says it does: -------- 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: Buy substantially identical stock or securities, Acquire substantially identical stock or securities in a fully taxable trade, Acquire a contract or option to buy substantially identical stock or securities, or Acquire substantially identical stock for your individual retirement arrangement (IRA) or Roth IRA. If you sell stock and your spouse or a corporation you control buys substantially identical stock, you also have a wash sale. -------- There's no room for interpretation there. And it's the worst kind of wash sale, since once the cost basis adjustment gets locked into the IRA, the loss is gone forever. Wash sales in a cash/margin account can eventually be recovered if so desired, but in the IRAs they're forever lost.