14

It would definitely be within 30 days, but it would be of next year.

So would this successfully by pass the wash sale rule?

7
  • 1
    The brokerage will still report it on 1099 because by the time 1099s are sent out (usually mid-March), the 30 days will have passed and your re-purchase would have been registered. Which is exactly why 1099s are being sent out late :-)
    – littleadv
    Dec 27, 2021 at 22:22
  • 29
    'I'd like to commit tax fraud. Am I smarter than the IRS?'
    – Valorum
    Dec 28, 2021 at 9:50
  • 7
    What part of the wash sale rule makes any reference to calendar years?
    – Barmar
    Dec 28, 2021 at 14:37
  • 4
    @Valorum irs is not very smart but why is he commiting tax fraud?
    – bakalolo
    Dec 29, 2021 at 3:19
  • @Barmar - What part of the wash sale rule makes any reference to calendar years? While it isn't explicitly stated in IRS pub 550, any realized loss in December can be converted into a wash sale with acquisition of a substantially identical security in January of the subsequent tax year if it's within 30 days of the realized loss. Dec 30, 2021 at 23:28

3 Answers 3

38

No, that's the whole point of the wash sale rule, to keep people from realizing a loss at the end of the year for tax purposes without significantly changing their position.

This assumes that you sold at a loss - if you sold for a gain, you would owe the tax when you file your 2021 taxes, but would raise your tax basis, reducing the amount of tax you'd pay later, which may be a wise strategy in some circumstances.

20

A wash sale violation occurs if you acquire a 'substantially identical' security within 60 days (30 before or 30 after) of realizing a loss. It doesn't matter whether it's in the same year or in two different years.

0

No, this would not avoid the wash sale rule.
The criteria is not "+/- 30 days within a year"

In general, regarding taxes...

If you think you have found a 'trick' all by yourself, maybe you should recheck everything carefully. Then look for additional laws that govern this type of thing. Then, if it still seems like a good idea, it is okay to ask here - but maybe spend a couple hundred to consult a professional before actually trying it.
The penalties for being wrong can be rather harsh.

Here's an example: If you are flagged this year, they may not audit you this year or next year. If you do it the third year, they can get you for all three years because they can go back three years (more for fraud, but that's a different topic).
The penalties accumulate from the date of the first offense, even if they knew and didn't tell you about it.

IANAL == I am not a lawyer
And even if I were a lawyer, I'm not your lawyer.

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