Subject:  wash sale rule
From:  Venkat
Date:  Mon, 18 Feb 2002

Is this a wash sale? I bought 4,700 shares of ABC on 10/17/2001 for $7,338. I bought 5,000 shares of ABC on 11/17/2001 for $4,386. I sold all 9,700 shares of ABC on 11/30/2001 for $11,865.

I am not positive if the first trade classifies as a wash sale. If it is a wash sale, I want to know the cost basis for the second transaction. Thank you.

Regards,
Venkat

Answer

Date:  February 2002

Hello Venkat,

Since you sold all of the shares and didn't replace them, there is no wash sale.

Good luck!
Mike Gray

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