clear up a little confusion on wash sales please
Can someone on here confirm that I have this correct?
I buy 100 shares of ABC corp. today in my IRA for $10 a share.
The next day ABC corp. falls to $9 a share.
I buy 100 shares of ABC corp. in my taxable account for $9 a share.
ABC corp drops to $8 a share and stays there.
If I wait 31 days before selling ABC stock at a loss in the taxable account, the wash sale rule is not triggered, correct? If I were to sell my taxable account position before 31 days, the loss would get absorbed forever into my IRA position (but not increase it's basis).
So I can buy similar stocks in my IRA and taxable accounts, but should always keep an eye on when I sell the stock in taxable such that it has been 31 days since I bought the same stock in my IRA? I can sell the stock in the IRA at any time though, because the basis would not be transfered out into the taxable account?
I really don't understand why they have to make this so convoluted...