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I'm editing this answer because the OP edited the original question, clarifying his premise. If you buy substantially identical identical stock or securities" within 30 days before or after realizing a lose, the loss is disallowed. Note that disallowed means that the loss is deferred. It does not mean that it is disallowed and lost forever. This involves 3 transactions if long (two buys and a sell).

The OP has changed his wording to clarify that he meant one buy and a sale within 30 says of his purchase. Although David Schwartz insists that this is a wash sale, his misinterpretation is incorrect. His claim is refuted by Craig W's link to Fairmark.com, a reputable taxation web site.

Furthermore, every web site that I have ever read that provides an example of a wash sale violation utilizes 3 transactions. I have never seen one that utilized two transaction and I doubt that anyone claiming that two transactions is a wash sale can find a reputable citation. Believing that 2 transactions constitutes a wash sale violation is a misguided personal interpretation of tax law.

Back to the OP's question. Buying a security and selling it with 30 days does not constitute a wash sale. The same holds true for shorting.


It appears that Fairmark.com is inadequate for some here. Per H&R Block:

The wash sale rules are designed to prevent people from selling investments and then buying the same stock back. Investors do this for the sole purpose of:

Creating a deductible loss

Using the loss to offset other shares sold for a gain Still keeping the stock or security in their investment portfolio

You can’t sell a stock or mutual fund at a loss and then buy it again it within 30 days just to claim the losses.

You’ll need to figure the basis for shares sold in a wash sale. When you do, add the amount of disallowed loss to the basis of the shares that caused the wash sale. These are the new shares you received. By doing this, you defer the loss, but it’s not disallowed for good. You’ll get the benefit of the loss when you eventually sell the new shares (unless it’s another wash sale!).

You also have a wash sale if both of these apply:

You sell stock at a loss.

Your spouse — or a corporation you control — buys the same stock within the 30 days before and after the date of the sale.

Also, you might have bought fewer shares of stock or securities than you sold. If so, only the number of shares you bought is subject to the wash-sale rules.

In all of these tax related web sites, wash sale discussion involves REPLACEMENT shares not a round trip loss involving a single purchase and a single sale. Believing that to be a wash sale is misguided.

I'm editing this answer because the OP edited the original question, clarifying his premise. If you buy substantially identical identical stock or securities" within 30 days before or after realizing a lose, the loss is disallowed. Note that disallowed means that the loss is deferred. It does not mean that it is disallowed and lost forever. This involves 3 transactions if long (two buys and a sell).

The OP has changed his wording to clarify that he meant one buy and a sale within 30 says of his purchase. Although David Schwartz insists that this is a wash sale, his misinterpretation is incorrect. His claim is refuted by Craig W's link to Fairmark.com, a reputable taxation web site.

Furthermore, every web site that I have ever read that provides an example of a wash sale violation utilizes 3 transactions. I have never seen one that utilized two transaction and I doubt that anyone claiming that two transactions is a wash sale can find a reputable citation. Believing that 2 transactions constitutes a wash sale violation is a misguided personal interpretation of tax law.

Back to the OP's question. Buying a security and selling it with 30 days does not constitute a wash sale. The same holds true for shorting.

I'm editing this answer because the OP edited the original question, clarifying his premise. If you buy substantially identical identical stock or securities" within 30 days before or after realizing a lose, the loss is disallowed. Note that disallowed means that the loss is deferred. It does not mean that it is disallowed and lost forever. This involves 3 transactions if long (two buys and a sell).

The OP has changed his wording to clarify that he meant one buy and a sale within 30 says of his purchase. Although David Schwartz insists that this is a wash sale, his misinterpretation is incorrect. His claim is refuted by Craig W's link to Fairmark.com, a reputable taxation web site.

Furthermore, every web site that I have ever read that provides an example of a wash sale violation utilizes 3 transactions. I have never seen one that utilized two transaction and I doubt that anyone claiming that two transactions is a wash sale can find a reputable citation. Believing that 2 transactions constitutes a wash sale violation is a misguided personal interpretation of tax law.

Back to the OP's question. Buying a security and selling it with 30 days does not constitute a wash sale. The same holds true for shorting.


It appears that Fairmark.com is inadequate for some here. Per H&R Block:

The wash sale rules are designed to prevent people from selling investments and then buying the same stock back. Investors do this for the sole purpose of:

Creating a deductible loss

Using the loss to offset other shares sold for a gain Still keeping the stock or security in their investment portfolio

You can’t sell a stock or mutual fund at a loss and then buy it again it within 30 days just to claim the losses.

You’ll need to figure the basis for shares sold in a wash sale. When you do, add the amount of disallowed loss to the basis of the shares that caused the wash sale. These are the new shares you received. By doing this, you defer the loss, but it’s not disallowed for good. You’ll get the benefit of the loss when you eventually sell the new shares (unless it’s another wash sale!).

You also have a wash sale if both of these apply:

You sell stock at a loss.

Your spouse — or a corporation you control — buys the same stock within the 30 days before and after the date of the sale.

Also, you might have bought fewer shares of stock or securities than you sold. If so, only the number of shares you bought is subject to the wash-sale rules.

In all of these tax related web sites, wash sale discussion involves REPLACEMENT shares not a round trip loss involving a single purchase and a single sale. Believing that to be a wash sale is misguided.

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Yes,I'm editing this answer because the purchase ofOP edited the very same sharesoriginal question, clarifying his premise. If you sold counts as buying "substantiallybuy substantially identical identical stock or securities" within 30 days before the sale and disallowsor after realizing a lose, the loss is disallowed. Note that disallowdisallowed means that the loss is deferred. ItIt does not mean that it is disallowed and is lost forever. This involves 3 transactions if long (two buys and a sell).

As for requestingThe OP has changed his wording to clarify that he meant one buy and a citation, you have provided the detailssale within 30 says of the rulehis purchase. In addition Although David Schwartz insists that this is a wash sale, on page 56his misinterpretation is incorrect. His claim is refuted by Craig W's link to Fairmark.com, a reputable taxation web site.

Furthermore, every web site that I have ever read that provides an example of Publication 550a wash sale violation utilizes 3 transactions. I have never seen one that utilized two transaction and I doubt that anyone claiming that two transactions is Example 1:a wash sale can find a reputable citation. Believing that 2 transactions constitutes a wash sale violation is a misguided personal interpretation of tax law.

You buy 100 shares of X stock for $1,000. You sell these shares for $750 and within 30 days from the sale you buy 100 shares of the same stock for $800. Because you bought substantially identical stock, you cannot deduct your loss of $250 on the sale. However, you add the disallowed loss of $250 to the cost of the new stock, $800, to obtain your basis in the new stock, which is $1,050.

Back to the OP's question. Buying a security and selling it with 30 days does not constitute a wash sale. The same holds true for shorting.

Yes, the purchase of the very same shares you sold counts as buying "substantially identical stock or securities" within 30 days before the sale and disallows the loss. Note that disallow means that the loss is deferred. It does not mean that it is disallowed and is lost forever.

As for requesting a citation, you have provided the details of the rule. In addition, on page 56 of Publication 550 is Example 1:

You buy 100 shares of X stock for $1,000. You sell these shares for $750 and within 30 days from the sale you buy 100 shares of the same stock for $800. Because you bought substantially identical stock, you cannot deduct your loss of $250 on the sale. However, you add the disallowed loss of $250 to the cost of the new stock, $800, to obtain your basis in the new stock, which is $1,050.

I'm editing this answer because the OP edited the original question, clarifying his premise. If you buy substantially identical identical stock or securities" within 30 days before or after realizing a lose, the loss is disallowed. Note that disallowed means that the loss is deferred. It does not mean that it is disallowed and lost forever. This involves 3 transactions if long (two buys and a sell).

The OP has changed his wording to clarify that he meant one buy and a sale within 30 says of his purchase. Although David Schwartz insists that this is a wash sale, his misinterpretation is incorrect. His claim is refuted by Craig W's link to Fairmark.com, a reputable taxation web site.

Furthermore, every web site that I have ever read that provides an example of a wash sale violation utilizes 3 transactions. I have never seen one that utilized two transaction and I doubt that anyone claiming that two transactions is a wash sale can find a reputable citation. Believing that 2 transactions constitutes a wash sale violation is a misguided personal interpretation of tax law.

Back to the OP's question. Buying a security and selling it with 30 days does not constitute a wash sale. The same holds true for shorting.

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Yes, the purchase of the very same shares you sold counts as buying "substantially identical stock or securities" within 30 days before the sale and disallows the loss. Note that disallow means that the loss is deferred. It does not mean that it is disallowed and is lost forever.

As for requesting a citation, you have provided the details of the rule. In addition, on page 56 of Publication 550 is Example 1:

You buy 100 shares of X stock for $1,000. You sell these shares for $750 and within 30 days from the sale you buy 100 shares of the same stock for $800. Because you bought substantially identical stock, you cannot deduct your loss of $250 on the sale. However, you add the disallowed loss of $250 to the cost of the new stock, $800, to obtain your basis in the new stock, which is $1,050.