I bought stock A on October 1. I sold stock A on December 1 for a small profit. I bought stock A on December 7 planning to hold for a while but decided it was not a good idea and sold Stock A on December 10 for a small loss and don't plan on buying stock A again. Is the December 10 sale of Stock A a wash sale?
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Do non-US tax rules have wash sales? I understand Canada has a similar rule but calls it something else. money.stackexchange.com/questions/29886/…– JTP - Apologise to Monica ♦Commented Dec 13, 2014 at 2:39
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@JoeTaxpayer not every country has wash sales rules (and in fact some are explicitly allowing them, including "technical sales" where you sell and buy back in the same transaction), and some countries don't have capital gains taxes at all.– littleadvCommented Dec 13, 2014 at 4:11
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1 Answer
Yes. On December 10, you have a wash sale. As long as you don't buy the stock back for 30 days after that, the wash is of no consequence. In other words, you don't have a wash issue if you don't own the stock for 30 days.
answered Dec 13, 2014 at 2:36
JTP - Apologise to Monica♦JTP - Apologise to Monica
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1Tax year ends in less then 30 days though. Can I use December 10 loss as a short term loss for this year? Commented Dec 13, 2014 at 2:45
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2Tax year ends, but the potential to have an ongoing wash sale doesn't end (given your Dec 10 sale) till Jan 10. Don't buy it until Jan 11 and you're all set with the loss in 2014. Commented Dec 13, 2014 at 3:22
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How is this a wash sale? There are no purchases in the 61 day period surrounding December 10, except for the shares themselves that had the loss. Are you saying that if I buy a single share and then sell it a day later at a loss that it is a wash sale with itself?– BugeCommented Mar 9, 2018 at 4:55