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I currently have RSUs that vested three months ago where the the current market price is lower than the value of the stock when I acquired it. I'd like to sell these RSUs (at a loss of about -$5,000) and use that -$5,000 as a short term loss for tax purposes.

I have another batch of RSUs that are vesting in two weeks. If I sell the already vested RSUs today, would me acquiring another batch of RSUs in two weeks constitute a wash sale and prevent me from taking advantage of the loss for tax purposes?

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I have another batch of RSUs that are vesting in two weeks. If I sell the already vested RSUs today, would me acquiring another batch of RSUs in two weeks constitute a wash sale and prevent me from taking advantage of the loss for tax purposes?

Yes.

Since you're effectively timing loss harvest before repurchase you're directly violating the wash sale rules. If you're selling more shares than are going to vest then you can harvest the loss of the remaining shares.

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  • Does the disallowed loss here get transferred to the newly acquired shares (from the upcoming vesting RSUs)? If so, how does that work? My $5,000 loss goes to the newly vested RSUs and the original cost basis of the shares I sold becomes the cost basis for the newly vested shares?
    – Lloyd Banks
    Commented May 15, 2022 at 20:20
  • @LloydBanks the disallowed loss is added to the cost basis of the newly acquired shares, just as with any other wash sale.
    – littleadv
    Commented May 15, 2022 at 21:19

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