Message Font: Serif | Sans-Serif
No. of Recommendations: 0

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.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.