Wash Sales

[RLymanC]

Information Only:

Seems like an earlier thread discussed this, not sure of the outcome

Revenue Rule 2008-05 provides that if an individual sells stock or securities for a loss and causes his or her IRA or Roth IRA to purchase substantially identical stock or securities within a specified period, the loss on the sale of the stock or securities is disallowed under section 1091, and the individual’s basis in the IRA or Roth IRA is not increased by virtue of section 1091(d).

Revenue Rule 2008-05 will be published in IRB 2008-3, dated Jan. 22, 2008.

[OtisMozzetti]

What a bummer!

It seems to me that since the disallowed loss on the wash sale cannot be added to the basis of the IRA account, then the disallowed loss should be "suspended" until the offsetting position within the IRA has been sold. Then the disallowed loss should become allowed.