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Say I sell 100 sh of XYZ at a loss. It was held over 30 days. Sold on Nov 15.

I then sell 200 sh at a loss on Dec 4. These shares also held over 30 days.

I then buy 100 shares on Dec 28. Does the wash sale rule apply?


Yes, but there's a bunch of confusion we need to clear and more information you need to provide. It doesn't matter how long you held the positions ("It was held over 30 days."). What matters is the timing of purchases relative to the dates on which shares were sold for a loss.

Starting with your first transaction - You establish the possibility of a wash sale when you sell shares for a loss on Nov 15. If you purchased any shares between October 16 and December 15, those shares would create the wash sale and their cost basis and holding period would be adjusted.

The Dec 4 sale also creates a potential wash sale. Buying 100 shares on Dec 28 "washes" half of the Dec 4 purchase. The other half of the loss can still be claimed this year (assuming no other purchases within the wash sale window.)

Ira
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