IRS Stock Sale Rules
July 29th, 2006
Question: Does the IRS Wash Sale Rule apply to gains as well as losses?
I have found several references to the wash sale rule expressed in terms of a caution against rebuying a stock within 30 days if you have a loss on a stock sale that you wish to deduct.
My question relates to the case where you have taken a gain on a stock sale. Does the wash sale rule still apply. If I rebuy the same security within 30 days, can I avoid taking the capital gain on the previous profitable sale?
Answer: No: you can do a wash sale to pay tax in a year where the capital gains tax charged will be low because you have no other income, or because you expect the CGT rate to rise (from 15% to 20%, say).
This is a longstanding rule. See IRC §1091 at http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00001091—-000-.html
First Industrial Realty Trust Provides Fourth Quarter 2009 Business Update
First Industrial Realty Trust, Inc. , a leading provider of industrial real estate supply chain solutions, today provided an update on its fourth quarter 2009 business activities.
World Record C5 Corvette IRS Run 8.60@163.95-FOR SALE $39K
Posted in 
Tags: