"Wash" sales

Wash sales do not apply to qualified accounts such as IRAs or 401(k)s. In non-qualified accounts, they do not apply account by account, but security by security. E.g., if you sold a fund or stock at a loss and repurchased within 30 days either way, then you have a wash sale, no matter whether you bought it in the same account or a different one. If you sold at a loss and didn't buy the same security within 30 days or if you sold at a gain, you do not have a wash sale. It is up to you to figure out if you have a wash sale, and if so, report it correctly. Other than that, the gains and losses from all of your non-qualified accounts are aggregated for tax purposes.

Dave

That is not decided law. In fact, some believe the IRS has ruled just the opposite. See the recent discussion "IRS Issues Revenue Ruling on Wash Sales (IRA & Roth IRA Buys Substantially Identical Securities)" in misc.taxes.moderated.

Thanks. What a subject while our Christmas dinner cooks! - our guests come late. None of the accounts are IRA, ROTH, 401 K, etc - so I see that " Security by Security" is the way it will work - and it sure is an argument for having only one account next year. Many thanks for your help - our sincere good wishes for a Happy and Successful New Year - My bet is that the subject of the economy will come up at the dinner table - :-)

Ciao Hauslohn

Certainly if all of the transactions take place within an IRA or within a 401(k), there can be no wash sale.

Dave

It's an argument for buying and selling a specific security in only one account. I have multiple accounts too, but I don't buy or sell the same stock in different accounts.