I am trying to understand the implications of wash sale as it affects gains and repurchase at higher price.

I buy 1 share of NVDA at 200 and the sell at the same exact price.

Within thirty days I buy 1 share of NVDA at 210 and sell for 215 within the same day. What is my cost basis for that one share?

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    Tip: tax questions need a country tag. Mar 30, 2022 at 12:36

1 Answer 1


US centric answer:

A wash sale occurs if you acquire 'substantially identical' replacement shares within 30 days (before and after) realizing a loss.

Assuming that there were no commissions and fees, if you buy 1 share at $200 and then sell at the same exact price then there is no realized loss. Therefore, buying another share at $210 is not involved in the wash sale process so its cost basis is $210.

If the first purchase had been for a loss, then that loss would have had to have been added to the second purchase (deferred). When you sold the second position, the initial loss would have been realized. If done in the same year, then this would be nothing more than paperwork - with no effect on reportable P&L.

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