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The following trades happened in a month:

Day 4: Bought 83 Shares of Company A using Fidelity

Day 5: Bought 118 Shares of Company A using E-Trade

Day 7: Sold 118 Shares of Company A bought in E-Trade at 3700$ loss

Day 14: Sold 83 Shares of Company A bought in Fidelity at 5700$ loss

Both of the loss making sell transactions fall under wash-sale exclusion rules of a purchase done in a 30 day before or after window? Are both the losses dis-allowed for tax purposes?

Any recommendations?

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Since all shares purchased were sold, as long as all transactions were done in the same tax year, and no other transactions could trigger a wash sale, it won't make a difference on your tax return.

Technically speaking, 83 of the day 7 shares sold should fall under the wash sale rule (with the remaining 35 not subject to a wash sale), and the disallowed loss added to the basis of the day 4 purchase shares. When you sell the 83 on day 14, the disallowed loss would then be recognized. Since everything was in the same tax year, there's no impact on your overall gain/loss.

The same would happen if all of those transactions were done at Fidelity in the same order (or E*TRADE) - I'm not sure if they would even report that on your 1099-DIV as a wash sale.

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  • Missed couple of trades. Will it change the outcome? Thanks in advance. Day 4: Bought 80 Shares of Company A using E-Trade IRA Account; Day 12: Sold 80 Shares of Company A bought in E-Trade IRA at 3500$ loss Jan 30, 2023 at 18:03
  • It definitely could. In that case, if there's a wash sale involving the IRA, it could permanently disallow the loss.
    – Stan H
    Jan 30, 2023 at 18:52

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