On Dec 7, 8:53 am, zxcvbob <zxcv...[at]charter.net> wrote:

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bullet point "Buy substantially identical stock or securities".
However, the disallowed loss is carried over to the new shares that
you bought, so that when you finally sell you reduce your profits by
the disallowed loss. But in the Roth IRA there are no taxes anyway.
If you bought at $100, sold at $80, then have the chance to buy back
at $70 and you think the stock will only go up from here, then buy it
back in the taxable account at $70. Sure, you don't get the loss of
$20 now, but you will when you finally sell at $120 .

On Dec 7, 4:22 pm, jo...[at]iecc.com (John L) wrote:
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Your basis in a retirement account (if any) is the after-tax/
nondeductible portion, and if
the overall value declines below that, it is possible to claim a loss
on a Schedule A (after 100%
has been distributed).

On Dec 7, 10:53 am, zxcvbob <zxcv...[at]charter.net> wrote:

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It makes no difference what you "rebuy" into. The loss is taken
against the "Selling" account (a taxable account, in this instance). I
think the general consensus is that changing account types (and even
differing, but highly similar investments) don't stand as exemptions
to the wash sale rule.

Sorry.

In article <fjc5g4$135h$1[at]gal.iecc.com> , John L <johnl[at]iecc.com> wrote:
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I have no idea wat you are trying to say, but it makes no sense.



An IRA converts capital gains into deferred ordinary income.






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--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

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How can't you claim your losses? Since your basis is zero, they're
netted out against gains when you start making withdrawals. In a
sense, you've already claimed the whole IRA as a loss by deducting
the contributions.

A more serious argument against speculating in an IRA is that you're
playing with the money you're presumably planning to live on after you
retire.

zxcvbob wrote:
- quote -

I asked this same question some time back. The consensus response seemed
to be that it was still self-dealing, that the loss would be lost
completely as it's washed from the post-tax account and the IRA has no
basis to drop by the washed loss.
In practice, it would take an audit to catch this, but I decided long
ago to keep my returns bullet proof. Receipts for the rental property's
expenses, and notes documenting the use. Proper receipts from charities
for checks sent, and pictures of donated items. Not worth the risk.

JOE
www.joetaxpayer.com

In my opinion, an IRA is not the best vehicle for speculative
investments, as you are unable to
claim your losses.

The wash sale rule is something of a paper tiger. If held outside of
a retirement account,
the loss is added to the basis of the new shares--you might be delayed
in taking it, but it isn't gone.

I think I know the answer to this, but I want to get a second opinion or
two.

I recently bought a "falling knife" in my taxable investment account. I
think it was a good purchase, I just bought a week too early. I'm
sitting on about a $1000 short-term loss. The stock is very volatile,
and if I sell it and wait 31 days I could possibly miss the rebound (or
not; who knows.)

I also have a lot of cash sitting in my Roth IRA.

If I sell the taxable position and immediately purchase the same thing
in the IRA, does the wash sale rule apply? I think it does not apply
because transactions inside an IRA account are not taxable events. What
do you think?

Thanks,
Bob