Rich <
[email protected]> wrote:
Scenario:
* Taxpayer has three separate accounts.
* Prior to any of this taxpayer has zero shares in XYZ anywhere.
* On the same day, taxpayer buys some XYZ in all three accounts.
* On a later day -- but less than 30 days out -- taxpayer
liquidates the XYZ position at a loss in one of the accounts. *
Taxpayer does not do any more purchasing of XYZ in any account for
at least 30 more days from that sale.
Is this a wash sale?
On one hand it seems to fit the literal rules -- there was a sale
at a loss within 30 days of a purchase.
On the other hand, there was a net decrease in the combined XYZ
position and that net decrease lasted over 30 days from both the
original purchases and the sale so there's no "I'm realizing a
loss but am basically negating the economic effect of the sale on
me" thing going on.
So is it a wash sale or not?
That should not be a wash sale. A wash sale involves acquiring
"substantially identical stock or securities...." It doesn't apply
to the same securities if you only buy them once and don't replace
them.
--
Stu
http://DownToEarthLawyer.com
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