Friday, December 21, 2007
The IRS yesterday issued an advance copy of Rev. Rul. 2008-5, 2008-3 I.R.B. ___ (1/22/08), which applies the § 1091 wash sale rules where a tapayer sells stock or securities at a loss and then causes her IRA to purchase substantially identical stock or securities within thirty days. As a result, the loss on the sale is disallowed and the taxpayer's basis in the IRA is not increased.