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Sorry, Debra, you should take a primer course in Wash Sales.

If he sold all the shares, then he can't have a wash. Remember the result of a wash sale is that the unclaimable loss is added back to the basis of the remaining shares. How could that be if there are no remaining sales?


Because the unclaimable loss is added back to the basis of the REPLACEMENT shares, and the part of a lot that isn't sold can't be the replacement shares for the part that was sold because they were'nt purchased to replace the sold shares, they're just shares not sold.

If you look up the definition of a wash sale, its that you bought shares (within 30 days) that you *did not sell* as part of the sale (as the OP quoted)

Again, they have to be an independent purchase to be shares you bought that you didn't sell, not the shares of the lot you bought that became the wash sale that you didn't sell.

As for the reinvesting, your comments were OT and just muddied the field. Contrary to your post it's difficult for the reinvested shares to NOT be reaplacement shares when they come every month. However, that's a minor problem as the reinivested shares are a very small fraction of the sold lot, and he didnt mention that as his problem..

ed
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