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If you buy a stock on day 1, and sell at a loss on day 20. Does the wash rule apply?

Thanks in advance,

Grey1
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If you buy a stock on day 1, and sell at a loss on day 20. Does the wash rule apply?

For the wash sale rules to start kicking in, you generally need two purchases and a sale, a potential loss, and to have some stock left when these are all done. So in your example, wash sales don't apply since all you did was buy and sell.

--ptheland
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<<If you buy a stock on day 1, and sell at a loss on day 20. Does the wash rule apply?>>

As ptheland notes, only if you purchase "replacement" stock. Read more about the wash sale rules in the Taxes FAQ area.

TMF Taxes
Roy
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