Conference 7.286::digital_investing

> The wash rule prevents people from selling stock at a loss,
> posting the sale in the current tax year, and then buying it back
> within thirty days.

Now that we're in that +/- 30 day period, if tomorrow I sell shares
currently in my account, at a loss, and, on, say, June 2 sell my new ESPP
shares optained the day before, is this a wash sale? 

Thanks.

    Re .48
    
    I believe all you have to do is BUY shares back (EPP Purchase before
    sale) to cause it to be a "wash" sale.   
    
    This is what can make such things as EPP and Dividend Reinvestment
    plans tricky since they have fixed purchase dates involved.   It all
    hangs on selling, then buying and I don't believe it even needs to be an
    equivalent number of shares.
    
    

Re .48

> Now that we're in that +/- 30 day period, if tomorrow I sell shares
> currently in my account, at a loss, and, on, say, June 2 sell my new ESPP
> shares optained the day before, is this a wash sale? 

Yes.  If you "buy" the June 1 ESPP shares, any shares sold *at a loss*
between May 2 and June 1, up to the number of new ESPP shares, are
considered to be a wash sale.  (Shares sold at a gain are not.)

If you then sell the June 1 ESPP shares on June 2, add the loss
that you couldn't take earlier to the basis of your June 1 shares,
which increases your June 2 loss and makes the total come out right.
However, your purchase date for the June 2 sale will is considered to 
be that of the shares you sold earlier under wash sale conditions.

(See Publication 550 for all the gory and gruesome details.)

-- Andrew