0

Day 1: I purchased 100 stocks of ABC for 100$. The stock went down and I purchased additional 100 shares for say 80$.

Now, my average is 200 shares for 90$.

Day 2: The stock went up and I sold all 200 shares for say 95$. I made an overall profit of 1000$ on the sale of all 200 shares. My question is would I be incurred a "wash sale" loss if I try to buy again the shares of ABC for say 90$. For the reason that although I earned a profit but I sold my first 100 shares for a loss of -500$?

3

Yes. You sold 100 shares for +$1,500 and 100 shares for -$500. If you buy again within 30 days you will have to top up the cost basis with the $500 loss.

The average is irrelevant.

  • Would the wash sale loss be incurred on the selling of 200 shares here, even if I don't buy new shares after selling? – PrasSFO Jun 21 at 20:08

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

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