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Author: DukeTG Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121148  
Subject: Do I have this Wash Sale done correctly? Date: 2/8/2009 12:05 PM
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Hi,

I have an ESPP with my employer, in which I buy about $500 worth of stock each month. I recently sold 125 shares (about $5000 worth) of stock, at a loss of about $400. I never stopped the ESPP, so I have a wash sale. As far as I can tell, I need to look chronologically at the shares I sold and match them up with the shares I bought (they were bought and sold on the same day, which is helpful, I guess). I have all the lot information (dates bought, cost basises, etc), so I can do the chronological analysis.

Looking at my statement, I bought 13 shares on the day I sold. The first two lots in my sale consist of about 24 shares, and both lots were sold at a gain. So as far as I can tell, the wash sales rule here says that since my losses were incurred on later lots, I've accounted for the shares I bought, and I can claim the full loss on my taxes this year.

Does this sound right? I've been trying to research wash sales and DRIPs/periodic investments, and it's been somewhat confusing.


Thanks!
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