Timeline for Do I have to claim a capital loss in the tax year that it occurred?
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6 events
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| Nov 6, 2019 at 18:44 | comment | added | Bob Baerker | @Vaility - Thanks for the clarification. I didn't grasp that the few second holding period was at the 30 day mark in order to create the ongoing wash sale violation. The risk would be carrying the stock from last trading day of 2019 to first trading day of 2020. | |
| Nov 6, 2019 at 17:53 | comment | added | Vality | @BobBaerker The wash sale rule states that if the stock is sold for a loss and re-bought within 30 days the loss is a wash and is carried forward into the new position. It would seem the OP could delay realising the loss indefinitely by rebuying the same number of shares and selling them a fraction of a second later, repeating this process every 30 days to cause repeated wash sales, carrying the loss forward into each new position using the wash rule for the entire year. Then finally letting the 30 days expire to realise the loss with the final sale. | |
| Nov 6, 2019 at 3:16 | comment | added | Bob Baerker | You're not sure what would work? As for your suggestion, the moment the OP sells the stock, the capital loss is realized. What would be the point of rebuying it for a few seconds every 30 days? | |
| Nov 6, 2019 at 0:59 | comment | added | Vality | Im not sure if this would work... But could the OP use the wash sale rule to sell the position and rebuy it for a few seconds every 30 days until years end? | |
| Nov 5, 2019 at 22:28 | comment | added | Bob Baerker | The easiest way to lock in the loss and defer it until next year would be to buy a very high delta put that expires in January (assuming the stock has options). The cost would be the time premium which would be relatively low if the implied volatility is reasonable. A no cost option collar might work if the stock cooperated but that's not a guarantee should share price recover sharply above the upper strike price. | |
| Nov 5, 2019 at 21:53 | history | answered | FrankRizzo | CC BY-SA 4.0 |