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Author: dogpuke Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120809  
Subject: Another Wash sale question Date: 8/8/2011 9:49 AM
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Let's say I have a wash sale in which I sell 5000 shares for a $100 loss. I then buy 3000 shares back. Do I prorate the loss (in this case $60 of the $100), or can I carry the entire loss over (the full $100) even though I bought fewer shares?

I curious if there's an easier way to account for mismatched wash sales when the share counts don't match.
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Author: dusty2004 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 113853 of 120809
Subject: Re: Another Wash sale question Date: 8/8/2011 11:49 AM
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Since you purchased 3000 shares back you cannot claim the loss on those until you sell them.

You can (and should) claim the loss on the 2000 shares.

Dusty

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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 113854 of 120809
Subject: Re: Another Wash sale question Date: 8/8/2011 12:57 PM
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Let's say I have a wash sale in which I sell 5000 shares for a $100 loss. I then buy 3000 shares back. Do I prorate the loss (in this case $60 of the $100), or can I carry the entire loss over (the full $100) even though I bought fewer shares?

Dusty gave you the correct answer, but let me restate it in the same way you asked the question. You prorate the loss. Each share sold keeps its piece of the loss ($.02). The shares which are washed (3000) have their cost basis increased by $.02/share ($60). The remaining "unwashed" shares generate a reportable loss of 2000 * $.02 = $40.

Ira

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Author: dogpuke Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 113857 of 120809
Subject: Re: Another Wash sale question Date: 8/9/2011 1:27 PM
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I think I worded my question a bit poorly. But I understand the prorating. I was just wondering if there was an easier way to deal with mixed lot sizes.

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Author: Thnxm8 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 114436 of 120809
Subject: Re: Another Wash sale question Date: 12/21/2011 12:37 PM
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It has never been clear to me when I can offset a loss with a gain - so I will ask the question.

In the example above, let;s say after adjusting the cots of the 3000 shares by 0.02 cents, I turn around and sell these 3000 shares for a gain of $200, wouldn't the $40 loss (from original sale) be offset with the $200 gain and I would pay capital gain taxes on $160 dollars?

Are there times when a wash sale loss cannot be offset (fully or partially) by a gain from a sale of the same security within the same year?

Jesse

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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 114438 of 120809
Subject: Re: Another Wash sale question Date: 12/21/2011 1:00 PM
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There are cases where a wash sale can carry across a calendar year.

Wash sales are started by selling at a loss. Selling at a profit does not start a wash sale "window."

If you sell all of the stock and stay out of it for 31 days, then all losses are realized.

1.) Buy stock A
2.) Sell stock A at a profit (profit is realized and taxable)
3.) Buy stock A
4.) Sell stock A at a loss
5.) Buy stock A within 30 day window
Previous loss is transferred to these shares (loss is not realized)
Until the stock is sold, the loss is not realized.

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