0

Consider the following scenario.

I buy 100 company ABC stocks at $100 each whose worth is $10000 on jan 1

I buy 50 company ABC stocks at $70 each whose worth is $3500 on jan 10

I sold 150 company ABC stocks at $95 whose worth is $14250 on feb 3

Is wash rule applicable for this?

1

Is wash rule applicable for this?

No - because you made a gain on the sale. You paid $13,500 for the stock and sold it for $14,250.

The wash rule prevents you from claiming a loss if you buy the same stock again within 30 days. You have no loss to claim, so the rule does not apply.

  • what about this. bought a stock and sold for gain and bought a stock and sold for loss on the same day. Net loss is $4. can i claim this loss for taxes?. – alekya reddy Apr 21 '17 at 22:01
  • So long as you don't buy the stock again within 30 days then yes you can claim the net loss. – D Stanley Apr 21 '17 at 22:07
1

Wash sale applies. If you purchase shares within 30 days of that Feb 3 sell date, the wash sale kicks in, preventing the loss on that sale, and deferring it into the new shares.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.