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- Further Understanding of Wash Sale Rules 2 answers
New to trading, trying to understand how wash sales apply to short term trades that occur in the middle of the tax year. Consider the following scenario:
Day 1: Buy 100 ABC for $10
Day 2: Sell 100 ABC for $5
Day 3: Buy 100 ABC for $4
Day 4: Sell 100 ABC for $10
At the end of the tax year, will my broker make the cost basis adjustment to the buy on Day 3 for me? Or will they simply tell me the $ amount of my wash sales, at which point I need to manually find and adjust every instance of this on my own?