I have a situation where I'm trying to avoid a wash sale and am trying to realize some losses by year end.
Here's the situation:
- Jan 1st - purchase 100 shares of XYZ at $100 per share - $10,000
- March 1st - purchase 100 shares of XYZ at $80 per share - $8,000
- September 1st - purchase 100 shares of XYZ at $60 per share - $6,000
- November 1st - purchase 100 shares of XYZ at $50 per share - $5,000
I currently have 400 shares of XYZ at an average cost basis of $72.5 per share. The current price of XYZ stock is $45/share
Using the FIFO method though, I thought I could now sell my "first" 100 shares for $45/share, resulting in a realized loss of $5,500, though I'm worried since I made another purchase less than 31 days ago this would trigger a wash sale?
- Do I have stop trading XYZ for 31 days to not trigger a wash sale
- Using FIFO can I do what I'm planning on December 2nd, and realize the ~$5,500 loss?
- What happens if I sell 100 shares today? (Which lot would the sale apply to? The last 100 shares bought?...resulting in a 500 dollar loss?)