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I bought AAA at 49 on Dec. 9th. Sold at 45 this morning.

I Want to know if I buy them back now at 39 I am subject to the wash rule, so how do I show the loss on my purchase on Dec. 9th?

I am assuming I use the loss from Dec. 9th trade and average it into my basis of the new shares I purchase today.

Correct?

Thanks a million!

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I suggest you go to the FAQ and read the article on Wash Sales by Roy Lewis. It will help you out.

Dan
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I Want to know if I buy them back now at 39 I am subject to the wash rule, so how do I show the loss on my purchase on Dec. 9th?

I am assuming I use the loss from Dec. 9th trade and average it into my basis of the new shares I purchase today.

Correct?


Correct. The wash sale rule means that you receive no tax benefit from the loss sale on 12/9, but the basis of the shares you buy today at $39 will be $43 ($39 plus the $4 loss from the wash sale).

You'll still report the 12/9 sale on your Schedule D. The instructions tell you how to account for the wash sale.

TMF ExRO
Phil Marti
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