Can I undo a wash sale?

Question

I sold stock at a loss thinking I could realize the capital loss and still keep the stock if I just repurchased it again.

Then I learned that The Wash rule will not allow me to do that, even though I’ve already rebought the stock.

Can I sell the stock again to buy a completely different stock and to realize my capital loss as well? Or is it too late since I already violated the Wash Rule?

Answer 1

Sure - the way the wash sale works is that your cost basis for the repurchased shares will be your original cost basis, so you can sell the repurchased shares, use the proceeds to buy a different stock, and recognize the loss.