Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
BUT.....i now have a lower cost base so if the stock rises back up and i sell i now have a gain to report - if i sell the stock at the original sell price then my new gain exactly offset the "wash" loss.....?

You missed a step in dealing with wash sales. The loss isn't "lost" - it is simply deferred. You accomplish the deferral by adding the loss into the cost of the replacement shares. So you don't really have a lower cost basis. In your example (from a prior post and my memory), your basis in the shares after the wash sale is the $80 you paid plus the $10 of loss from the wash sale. So you get the benefit of the loss on the wash sale when you ultimately sell the replacement shares.

--Peter
Print the post  

Announcements

Disclaimer:
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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.