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I've been reading all the "Wash Rules" questions and replies which have answered nearly all of my own questions. And I know you've been plastered by so many "Wash Rules" questions, you're sure to be squeaky clean by now. But I would appreciate help on my own little scenario (all transactions of the same stock). Okay, here's the background. I bought 100 shares of a stock @ \$14.00/share on 5 Jan 2000, another 100 @ \$2.00/share on 15 Nov 2000, and 500 @ \$1.00/share on 13 Dec 2000. I sold 100 shares @ 1.00 on 29 Dec 2000. Now, here's the question. I know the "Wash Rule" applies to a stock purchase and/or sell within a 3o day period. Even though I bought and sold the same stock in December, can I still take a capital loss using the FIFO method whereby I count my first purchase of 100 shares of the stock on 5 Jan against my first sell of 100 shares of the stock on 29 Dec? Thanks.

C&C
No. of Recommendations: 0
I would appreciate help on my own little scenario (all transactions of the same stock). Okay, here's the background. I bought 100 shares of a stock @ \$14.00/share on 5 Jan 2000, another 100 @ \$2.00/share on 15 Nov 2000, and 500 @ \$1.00/share on 13 Dec 2000. I sold 100 shares @ 1.00 on 29 Dec 2000. Now, here's the question. I know the "Wash Rule" applies to a stock purchase and/or sell within a 3o day period. Even though I bought and sold the same stock in December, can I still take a capital loss using the FIFO method whereby I count my first purchase of 100 shares of the stock on 5 Jan against my first sell of 100 shares of the stock on 29 Dec?

Since you're asking this question this way, we'll assume that you did not identify the stock sold on 12/29/2000. Thus, you sold the 1/5/2000 shares, and the basis was \$1400. You have a \$1300 loss on the sale.

However, you purchased 500 shares on 12/13/2000, so the 12/29/2000 sale is a wash sale, and you cannot recognize the \$1300 loss. Rather, you have to add the loss to the basis of 100 of the replacement shares.

TMF ExRO
Phil Marti
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Thanks Phil,

So let's see if I understand this correctly. I must add the loss of \$1300 from the 29 Dec 00 sell of the 5 Jan 00 purchase to the cost basis of 100 of the 500 shares bought on 13 Dec 00. That would be \$100 minus \$1300 for a cost basis of neg \$1200? Does this mean I get to claim this on my 2000 taxes or no? Thanks.

C&C
No. of Recommendations: 1
You claim your loss on the wash sale when you either get out and STAY OUT for 31 days, or if the price turns and you are able to sell the stock at a profit, you have less tax to pay.
You do not have a negative cost basis. You ADD \$1300 to what the Dec 13 purchase price was.
Assuming you still held the stock on Dec. 31, no you do not get to claim the loss on your 2000 taxes. If you are still holding these shares Dec 31, 2001, you won't be able to claim in 2001 either. You have to sell to be able to claim the loss, and next time don't make a wash sale by buying again.
Best wishes, Chris
No. of Recommendations: 0
Thanks Chris! Wash done, time to dry...

C&C