If a day trader actively trades a stock nearly every day for a year -- obviously generating losses as well as gains -- and does not wait 31 days to re-buy after a loss, what happens to the losses if he/she purchases the same stock in an IRA? Are all losses for the whole year erased per Rev Ruling 2008?
For example, say a trader starts trading XYZ on Jan 1 and trades it everyday through December 31. In the process, he/she accumulates $1 million in gains and $800,000 in losses (with plenty of wash sales along the way). On December 31, he/she buys just 10 shares of XYZ in an IRA. Are all the losses ($800,000) erased b/c 31 days never elapsed on each loss?
