My client is the Trustee for 2 complex Trusts. Let's call them X and Y. Each trust has the same beneficiary. The trustee wants to sell IBM stock at a loss in Trust X and immediately buy IBM stock in Trust Y. Will he run afoul of the Wash Sale Rules?
-
-
I would say yes. See Internal Revenue Code ?267. b, relationships. https://www.law.cornell.edu/uscode/text/26/267 -
You might want to look at Rev Ruling 2008-5. While it specifically addresses wash sales in and out of IRAs, there is a reference to a case (Security Bank) which might shed some light.Comment
-
terryats, thanks, that web site seemed to nail it.Comment
Comment