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Hi All,

I was reading some of the great wash sale articles here on MF and had one specific questions to help clarify my understanding of it. I understand the 30 days before and 30 days after the loss sale date where inside that period your loss in just passed onto the basis total of your new purchase of the same stock.

My question is if I bought a stock and 10 days later sold it at a loss in the same year by exiting my position completely and then not buy that stock the rest of the year, this does not fall into the wash sale rule correct and I should be able to take the loss into consideration for my taxes as I did not enter into the position again?

Thank you
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My question is if I bought a stock and 10 days later sold it at a loss in the same year by exiting my position completely and then not buy that stock the rest of the year, this does not fall into the wash sale rule correct and I should be able to take the loss into consideration for my taxes as I did not enter into the position again?

If you don't repurchase within 30 days of the sale it does not fall into the wash sale rule.
So the only question that has to be answered in the above scenario is "Was the stock sold after Dec. 1st? And if so, is it re-purchased within 30 days after the sale?" (You say "rest of the year", but depending on when the sale date was, "rest of the year" may or may not be more than 30 days)

Ex. Selling at a loss on Dec. 20th and repurchasing on Jan 5th still will run into the wash sale rule. (Dec. 20th is less than 30 days from Jan 5th)
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My question is if I bought a stock and 10 days later sold it at a loss in the same year by exiting my position completely and then not buy that stock the rest of the year,

1.) All sell transactions are within the same year
2.) Before the end of the year
a.) the entire position in the stock was sold
b.) the same stock was not rebought within the 30 day window
The 30 day window can extend beyond the end of the year

The entire loss is realized. Technically, there is a wash sale but it doesn't make a difference in the result.
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The entire loss is realized. Technically, there is a wash sale but it doesn't make a difference in the result.

"technically", or really, there is no wash sale BECAUSE there must be a replacment share purchase to create a wash sale out of a normal trade at a loss. If you do have a wash sale and the replacment shares are sold (and not repurchased), the "technicallity occurs and with no difference in tax there can be no penalty, hence it is safe to ignore the wash sale.

ed
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"technically", or really, there is no wash sale BECAUSE there must be a replacment share purchase to create a wash sale out of a normal trade at a loss.

You are correct. I read it as if there was a purchase within 10 days.

Debra
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