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If you sell an entire position (e.g. 100 shares in company X) at a short-term capital loss on Dec. 10th, and your broker reports an adjusted "disallowed wash-sale loss," can you:

a) Re-purchase the 100 shares on Feb. 25th and re-adjust (and re-allow) the loss?
  As implied on http://www.irs.gov/pub/irs-pdf/i8949.pdf, page 7.

b) Re-purchase the 100 shares on Jan. 25th and re-adjust (and re-allow) the loss?
  Some article implied the entire month of January is off-limits.

c) Do (a) or (b) if, back in December, you sold only part (e.g. 33 shares) of your position?
  (and then later re-purchased just that part.)

  • If someone can tag this "form-8949" and "schedule-d" -- that would be awesome. I don't have enough rep. to do it myself. – Edward Salwin Feb 16 '14 at 0:01
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Disallowed losses are created when you buy a stock */- 30 days of a sale at a loss.

When you sell and have no shares left, the loss is taken. You can't have no shares and leftover disallowed loss.

  • What Joe is saying is that the OP has probably bought the shares already, and selling the position (at gain) will allow taking the loss. – littleadv Feb 16 '14 at 6:13
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    OP said he sold entire position. If no purchase in 30 days, the wash is used up, either to offset gain or have capital loss. – JoeTaxpayer Feb 16 '14 at 7:46
  • The broker reported a disallowed loss simply b/c shares were sold at year-end (December). From what I understand, I can maybe 're-allow' the loss (for tax year 2013) if I prove I did not re-purchase the shares within 30 days. – Edward Salwin Feb 18 '14 at 7:49
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    Yes, you're all set. Seems the broker sets the flag for a sale at a loss anytime in December, as it can trip wash sale for a purchase in January, I'd within 30 days. – JoeTaxpayer Feb 19 '14 at 2:33

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