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I had a $2600 of wash sale tax loss that occurred in April 2018 (purchased two lots of same stock within 30 days but sold them both in April at a loss at once). I did not buy that security after that sale and forgot about it.

So, if I buy that same security now in 2019, will I be able to add that $2600 towards 2019 cost basis or am I too late now to take care of that loss in 2019? Basically, how much time do I have to act after that wash sale tax loss?

  • Tax questions require a country tag. Are you asking about the United States? – Chris W. Rea Feb 11 at 20:26
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A wash sale violation would have occurred if you had purchased substantially identical stock (you did) within 60 days (30 before or 30 after) of realizing the loss on the first purchase while retaining the second purchase (or if you had you sold the second lot instead).

There is no wash sale violation because you sold the entire position. Your $2,600 loss applies to your 2018 tax return.

If you buy the security now, it's a brand new ball game that has nothing to do with last year's positions.

  • but then i see $2600 for Box 1g (Wash Sale Loss Disallowed) in etrade 1099-B form i received. wouldn't that mean that i am not allowed to take that loss?or should i talk to etrade to get rid of that? – amjad163 Feb 11 at 20:51
  • You can only have a wash sale carry forward violation if you had other related shares (or options) open at the end of the year. Did you? Is there any chance that the wash sale loss was added to the cost basis of the second position and it is accounted for there? If no to both of these then contact E*trade for an explanation. Perhaps it's an error. – Bob Baerker Feb 11 at 21:01
  • thanks for being patient and prompt. you are correct. i checked and seems like they did change cost basis. appreciate your help – amjad163 Feb 11 at 22:23
  • You're quite welcome. I'm glad that it worked out to your satisfaction. Almost every year I find errors on my 8949 form prepared by my broker. What galls me is that they report that to the IRS but at the bottom of the form they make a disclaimer about its accuracy. Trust no one! ;->) – Bob Baerker Feb 11 at 22:27

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