I think I understand the reason for the IRS wash sale rule to prevent harvesting of tax losses. My question has to do with how does this rule apply to a gain. I recently saw what I felt was an short term opportunity to lower my basis for a stock that was already up 20%. So I sold and have a $4000 short term gain. Now two days later, the stock had dropped a little, so I have bought back my original position.So will the wash sale rule protect me from gains on this sale?thanks,....mike Cross posted to Beginning Investors Board
So will the wash sale rule protect me from gains on this sale?Nope. It will be fully taxable.--Peter
The wash sale rule is to protect the IRS, not you :). Sorry, wash sale only applies on the loss, your $4k will be taxed at the full rate, hence the reason to generally avoid short term positions, although with a gain like that you can't be complaining too much.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |