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I buy a single share of XYZ at $1.00 then later buy another share at $2.00. Thus I have a total of two shares at the average cost basis per share of $1.50.

I want to sell all my shares without incurring a loss at $1.50 with a stop limit. Soon later (less than 30 day period), I want to buy at a better price.

Can I sell all my shares at $1.50 or above without incurring a wash sale if I decide to buy again in the under 30 days? OR do I incur a wash sale on my second share that was bought at $2.00?

In other words, does wash sale occur on the average cost basis or based on the price of each share?

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  • I don’t exactly know the answer to your question, but when you’re filling out 8949, you can put “various” as the purchase date, $3 as the sale proceeds, $3 as the basis, and $0 as the gain/loss. So it seems like this would achieve what you want.
    – prl
    Feb 23, 2021 at 8:39

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In my example, the share bought at $2.00 becomes a wash sale. If bought again, the cost basis will be at $2.00 (at least how my brokerage does it!). In this example, its best to sell at the highest price of all held shares (i.e., $2.00+) to prevent any wash sales.

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