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Author: kmmodlish Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123045  
Subject: Loss then gain, Wash sale off the gain??? Date: 4/5/2000 7:07 AM
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Ok, here's the question:

I've got a loss of $1000. The next day I buy the same # of shares and sell for a $500 gain. The next day I buy and sell again for another $500 gain. Does the wash sale end with the first $500 gain, since it was actually a gain? Or does the cost adjusted basis from the wash sale actually make this gain a loss of $500, thereby creating another wash sale to be closed on the third transaction?

Also, if I have a loss, loss, and loss, on the Schedule D do I enter each sale with the new cost adjusted basis each time until the loop is closed?? This will keep adding up the losses on the Schedule D as a wash sale each time, even though they are not fully assumed until the loop is closed.

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