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Just want to be sure... sold my entire position in a stock at a loss last December 26th, and according to my calculations, I can now buy back that same stock on January 26th (tomorrow) and still claim the loss for 2000 taxes (since 1/26 is the 31st day after the 12/26/00).

Do I have this correct ? I want to make sure that the 30 days is Calendar days and not business days or anything like that...
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You have it right--tomorrow you can buy back if you want to.
I wuz right there with you selling on December 26; but I figured I'd had enough of those stocks and bought back in sooner--different stocks. The replacements have done well!
Best wishes, Chris
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I'm not an accountant, but I looked up wash sale at irs.gov and it appears to be 30 calendar days in their examples. Also, 30 business days would be just too confusing.

steve
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Also, 30 business days would be just too confusing.

When did Congress ever think about that when writing tax law? Sorry, couldn't resist.

TMF ExRO
Phil Marti
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If you are regularly buying stock through your employer provided stock purchase plan (or even a DRP), say, every quarter (on 1/1, 3/1, 6/1 and 9/1) to thetune of say 5% of your pay check.

Is it critical that you time the sale of stock in same company to be 30 calendar days prior to the purchase plan's buy date to avoid falling under the wash sale rule for buying back into a company you sold at a loss?

Supposing the answers is "YES you need to be careful about the timing of your transactions" then here's a hypothetical:-
1. Let the current beginning of quarter (1/1/01) stock purchase plan transaction be $1000 worth of stock.
2.Let the current sell at loss transaction be $10,000 current market value stock sold with a cost basis of $15,000. (realized loss of $5,000)
Variable here is the date of this sell transaction.
3. Let the subsequent quarter's (3/1/01) stock purchase plan transaction be $1000 worth of stock.

a) Is the timing of Transaction #2 above required to fall within {1/1/o1} and {(3/1/01)-30cal days} to avoid disqualifying the $5000 as a legitimate tax loss?

b) Is all(100% of) the $5000 loss-on-transaction#2 discounted or maybe only prorated (1000/10000=10% or 1000/15000=6.6%) based upon the size ($1000) of the buy back on 3/1/01.

much obliged!

jumpinjupiter


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