Quoting IRS publication 550,
A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you:
- Buy substantially identical stock or securities,
- Acquire substantially identical stock or securities in a fully taxable trade,
- Acquire a contract or option to buy substantially identical stock or securities, or
- Acquire substantially identical stock for your individual retirement arrangement (IRA) or Roth IRA.
Suppose I buy 100 shares of a stock on July 1, and two weeks later, on July 15, sell those shares at a price lower than I paid for them. I have sold stock at a loss, and I have not made any purchase of replacement shares - I own 0 shares at the end. However, the purchase through which I acquired the sold shares falls within 30 days before the sale. This purchase is a purchase of shares identical to those I sold, because those shares are the shares I sold.
Does the purchase through which I acquired the shares I sold count as buying "substantially identical stock or securities" within 30 days before the sale, thus disallowing the loss? I feel like it shouldn't, but laws can get really weird. Citations would be appreciated, the more explicit the better.