Message Font: Serif | Sans-Serif
No. of Recommendations: 0
To whoever can answer it:
I fully understand the 30 day wash sale rule. My question is this - if I perform (idiotically) *repeated* wash sales in the same security, what is my final cost basis for tax purposes?

Trade 1: Buy 1000 WASHX 12/1
Trade 2: Sell 1000 WASHX 12/8
Trade 3: Buy 1000 WASHX 12/15 (making trade #2 wash sale #1)
Trade 4: Sell 1000 WASHX 12/22
Trade 5: Buy 1000 WASHX 1/23/99

Is cost basis for Trade 4 the cost of Trade 1? and does it stay that way for every wash sale thereafter?
Print the post  


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.
Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
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.