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day 1, I buy 200 shares @ $2 (lot A)

day 20 I buy 100 shares @ $2 (lot B)

day 21 I sell 100 shares @ $3 (selling lot B)

day 40 I sell 100 shares @ $1 (selling lot A)

Is the last sale a wash sale?

  • 4
    Why are there so many wash sale questions? What blog is talking about wash sales right now? – quid Mar 19 '18 at 19:50
  • @quid It's tax time in the U.S. Possibly people are getting hit with a wash-sale tax rate and they're learning of its existence for the first time. – shoover Mar 19 '18 at 20:19
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    How is this different from Wash sale repetition through chaining ? Given the way these questions a worded, Do you really have a potential wash sale? – JTP - Apologise to Monica Mar 19 '18 at 23:03
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    @BobBaerker - I know you are replying to quid. No problem. My issue is these two questions don't reflect real examples. The other OP got irate when I suggested that once 30 days passed, the wash issue was moot. – JTP - Apologise to Monica Mar 20 '18 at 0:02
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    At this point I suspect we're unpaid consultants to some tax optimization software project. – quid Mar 20 '18 at 0:11
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day 1, I buy 200 shares @ $2 (lot A)

day 20 I buy 100 shares @ $2 (lot B)

day 21 I sell 100 shares @ $3 (selling lot B)

day 40 I sell 100 shares @ $1 (selling lot A)

On day 21, you sold 100 shares from Lot B, at a profit, so Lot B is gone.

On day 40, the 100 shares sold at $1, Lot A shares, are sold at a loss, therefore, Wash becomes an issue if you buy replacement shares on or before day 70.

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Using Wikipedia's definition sale is

a sale of a security (stocks, bonds, options) at a loss and repurchase of the same or substantially identical security shortly before or after

According to this definition, the following scenario includes a wash sale:

  1. day 1, I buy 200 shares @ $2 (lot A)
  2. day 40, I sell 100 shares @ $1 (lot A)
  3. day 41, I buy 100 shares @ $1 (lot A)

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