This question already has an answer here:

I sold some fund shares with high turnover on my personal investment account with the intent of buying something similar later on my IRA account. However, after I sold (and within 30 days), I received dividends on the leftover shares which I have set to automatically invest into shares. Have I created a wash sale? I've seen questions asking with something similar, but I'm not sure if order matters between dividend and selling.

Presuming I have caused a wash sale: if I sold 100 shares, then got a 2 share "dividend" via reinvestment of my other shares, can I still use the 98 shares as a loss or is the entire transaction considered a wash sale?

marked as duplicate by JoeTaxpayer united-states Apr 17 at 13:46

This question has been asked before and already has an answer. If those answers do not fully address your question, please ask a new question.

  • Was all of this in the same tax year? If so then it doesn't matter. – D Stanley Apr 17 at 13:20

If you realize loss and you purchase new shares in the same security within 30 days (before or after), a wash sale occurs. This also applies to reinvested dividends. The portion of the loss allocable to the reinvestment will be disallowed and must be carried forward.

Not the answer you're looking for? Browse other questions tagged or ask your own question.