Questions tagged [wash-sale]

A wash sale is a sale of a security at a loss and repurchasing the same or substantially identical stock shortly before or after with the intention of realizing the loss as a claimable tax deduction but still reaping gains if the security's price recovers.

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24 views

Does a wash sale make sense in downward trending stock?

I buy 100 shares of ABC @ $50. I sell it in a week for $45. I buy it back in a week at $30. My understanding is that the adjusted basis for the last purchase was $35. Is that correct? If so, it seems ...
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IRS Wash Sale Rule: can a single lot be adjusted more than once?

When the only eligible replacement shares for a wash sale basis adjustment have already been adjusted, are they adjusted again? Or is the loss allowed? Example: Suppose this is the entirety of my ...
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Wash sale with options and stocks

Let's say the following happens within 30 days. Buy 10 shares for total of $100. Buy a call option Sell the call option for a $1000 loss. Buy 1 share for $10. Does buying back that 1 share fall ...
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Wash Sale and Average Cost Basis

I buy a single share of XYZ at $1.00 then later buy another share at $2.00. Thus I have a total of two shares at the average cost basis per share of $1.50. I want to sell all my shares without ...
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Can I deduct wash sale loss from my total positive capital gains for the year

Here is my simplified wash sale scenario. Let's say I traded only 2 stocks last year: XYZ for a total of $500 wash sale loss. ABC for a total $1000 gain. Txns for XYZ: 05/28/2019 BUY 100 shares ...
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Why is there Wash Sale Loss Disallowed on my 1099 when I close all positions?

Say I have a $5000 in wash sale losses 1099 Wash Sale Loss Disallowed (Box 1g). Do I need to do anything at this point to try and recoup the loss? Assuming that I closed all positions shouldn't my ...
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166 views

Need help with wash sale loss disallowed

Just received 1099 for 2020. My wash sale loss disallowed is $47,000 & my net loss is -$770. I just want to know how much tax I'll need to pay approximately. I recently learned what the wash sale ...
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How do I report January 2021 wash sales in the 2020 tax return?

Do I need to report my January 2021 wash sales in my 2020 tax return or how are they handled? I have some wash sales in the month of January which are of course the result of similar transactions that ...
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Wash Sale Rule - Multiple Purchases across accounts

If I purchase a stock/option, sell it for a loss, and then repurchase the same stock/option in multiple accounts, does the wash rule apply to the first repurchase? I think my understanding of options ...
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Option trader with wash sales at the end of the year

I day trade options and I understand that wash sales at the end of the year can really screw you. I have not traded any position in 2021 that I traded in the last 40 days of 2020 in either my day ...
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Wash Sale Question [duplicate]

It's Jan 1st and I buy 1 share of XYZ for $10. Jan 2nd I sell it for $9. Jan 3rd I buy it back for $9. Jan 4th I sell it for $8. Final loss: -$2 I understand this is a wash sale. But in my year end ...
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Options trading and wash rule

For example, I buy a PUT option on TSLA for 3000 dollars and realize it's not working and sell it to close for 2000 dollars. Thus I have lost 1000 dollars on this transaction. Within thirty days of ...
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Is selling a put a wash sale if the buyer does not exercise within 30 days of purchasing the put?

Let's say you sell an equity on the 1st of the month for a loss. On the 10th of the month, you sell a put on the same equity. If the put is not exercised by the counterparty of the put within 30 days,...
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Wash sale if I sale at a loss and in another account sale for a profit?

I sold a stock at a loss in one account, and a few weeks later sold from another account once the stock went up. The stock I sold for a profit was purchased 90 days before I sold the stock for a loss....
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Stock Sold at Loss, Will buying a Put Option Cause a Wash Sale?

I sold 250 shares of a stock at a loss of (-1,000). 2 weeks later bought a single put contract (100 shares) n the same stock. If I sell the put option for profit a few days later, is this a partial ...
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Tax loss harvesting with stocks and ETFs

Suppose I'm taking losses in a set of individual stocks (X, Y, Z ...). What are the US tax implications if I sell all of them, harvest losses for tax purposes, and select an ETF E with significant ...
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Wash-sale Cost Basis Adjustment question

I wonder about the Adjustments to Cost Basis after a wash sale occur. Considering this Example 1 ( from marketwatch.com) where someone: On 1 Dec, 2018 used an amount of money in his account to buy 100 ...
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Does wash-sale rule apply to my case?

I put like $14,000 in a Fidelity account, and $5,000 in a TD ameritrade account.I used all the money in 2 accounts to buy shares of UGL Etf on 8-18-20 (this Proshares leveraged ETF tracks the gold ...
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Does the wash rule apply for naturally expired option contracts [duplicate]

Does the wash sale rule apply to options expired worthless? for example, my BA Aug 18 call expired worthless (Just expired not sold) will this loss be considered a wash sale if I purchase BA long call ...
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Wash sale regarding “one bite of the apple” rule

following is a wash sale example I am confused about(all trades are on the same stock): Day 1: Buy 100 shares at $110 Day 2: Sell 100 shares at $100 Day 3: Buy 200 shares at $95 Day 4: Sell 100 ...
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269 views

Which lots have to be sold in a wash sale?

Here's the scenario: I have multiple wash sales with the same company. Let's use Apple as an example where I'm day-trading in and out of Apple. The price continues dropping and I keep buying back at ...
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Wash sale deductible?

Day 1: I purchase Stock A. Day 5: I purchase more Stock A. Day 18: I sell 1/2 of total investment for a loss. I don't repurchase same or similar stock. Is this loss deductible, to be netted with ...
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Can closing a short position trigger a wash sale?

I have a bit of a weird situation, and am not 100% sure how the wash sale rules should apply (in the U.S.) Lets say I have 100 shares of a mutual fund that I purchased over a year ago for $10 each, ...
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219 views

How do i take a loss for tax purposes if i have a wash sale but closed the position and wasn't planning on repurchasing any additional shares?

I've been actively trading a stock but am now out of the position and wasn't planning to reinvest in the security. I have some wash sale losses that i would like to use for tax purposes. Is my only ...
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Wash sale and Options?

I'm confused on what it means to for security to be substantially equal? For example say I buy a call and then sell it for a loss before expiration. If I buy another call in the same underlying at a ...
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1answer
140 views

Can wash sales turn profit into loss after taxes?

Consider a person who repeatedly changes allocation between 2 securities within a few days, by selling the security whose prices went up and buying the security whose price when down. Is it possible ...
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238 views

Wash sale with multiple trades

I have read most of the posts on this subject and I think that I know the answer but I want to verify it: 1/2/20 I buy 100sh of XYZ at $3; 1/3/20 I buy 100sh of XYZ at $5; 3/1/20 I sell 200sh of ...
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Do IRS wash sale rules apply to gains as well as losses?

Consider the following two situations: Situation 1 5/1/2018 -- buy 10 shares XYZ at $100 5/1/2020 -- sell 10 shares XYZ at $50 (and claim a long-term capital loss of $50/share) 5/15/2020 -- buy 10 ...
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Wash Sale Rule --> disallowed loss carry forward in this particular scenario where I buy replacement shares just *before* selling the entire position?

Please see the example below illustrating a scenario where I buy replacement shares before selling the entire position. My questions are: If I don't buy replacement stock for 30 days after May 8th (...
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ESPP + selling ESPP + selling stock — wash sale clarification?

Have a general question regarding a current situation I'm in. Have been reading for a good hour now and still don't completely understand the optimal way to proceed, hoping you all can help. ...
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Did these trades cause a wash sale?

I bought and then sold a stock for a gain on April 15th. I bought the same stock again last week and I am going to sell it for a loss. Is this a wash sale? This is USA.
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If I convert SPY to VOO to reduce the fees, then do I have to pay a capital gains tax?

I have some SPY for many years and it has gone up since then. I noticed that the fees are much higher than the VOO which is also an ETF for the SP500. Both ETF's hold the same underlying SP500 ...
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115 views

Question about calculating wash sales across multiple orders

How do I handle the accounting of my wash sales? I bought AXP in 3 different orders, all purchased within 5 days of each other: 100 @ 122 100 @ 100 100 @ 76 I sold all 300 @ 102, and then ...
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265 views

Re-purchasing a stock at a loss. Re:IRA's

I recently sold some stocks at losses, but also some at profit in a regular TD Ameritrade acct. Can I buy those same stocks in an IRA within 30 days without affecting the loss in a regular account ...
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Is this capital loss deductible on my 2020 taxes?

I took a decent loss on one trade. I'm hoping someone can help me clarify if my loss can be deducted on my 2020 taxes. I am in the USA Here are the trades - 2/2 buy call option 2/2 sell call ...
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125 views

Washsale for daytrading

I have following scenario of washsale ? Can someone please help me if wash sale will apply to me in any case ? I knwo for three trades i made in Dec 2019 has wash sale but is covered with profit I ...
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Can I take capital loss here? (Wash sale) And how to calculate cost basis?

Lets say I have the following trades of CompanyA stock: Jan 1st - bought 5 for $10 Jan 15th - bought 3 for $12 Jan 25th - bought 3 for $15 Apr 15th - sold 11 for $18 -- Gain May 5th - Bought 5 for ...
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Are wash sales calculated by my broker?

For taxes, do I need to calculate wash sales myself, or are they typically reflected on the tax documents I will be sent by my broker?
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Does the wash sale rule apply when rolling options spreads?

If I short a spread and roll it over the next month at a profit, does the losing leg carry over to the new trade? Example: Short 1 January PUT $200 Strike +$100 Long 1 January PUT $150 Strike -$30 ...
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1k views

If I own some stock, then buy more and then sell, is that a wash sale?

I use Robinhood for stock trading that uses FIFO (there is no other selectable option). If I.. Bought 10 shares of SSS 1/1/2019 at 1:00 pm at $100 each = $1000 Bought 10 shares of SSS 9/1/2019 at 2:...
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Is selling in IRA and then buying similar stock in regular account a wash sale?

Suppose I buy 10 shares of XXXX at $300 in my IRA account on Jan 2nd for total $3,007. XXXX drops to $250 on Jan 10th and I then buy 10 shares in my taxable account for a cost of $2,507. On Jan ...
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220 views

Is this a wash sale violation?

The following lots of stock A have been purchased: Lot 1: 5/28/18 100 shares for $1,000 Lot 2: 6/04/18 100 shares for $1,500 Lot 3: 9/10/18 100 shares for $1,100 Transaction in question: 9/...
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Rules for cost basis adjustment of RSUs that vest causing a wash sale

I've read through a bunch of posts and couldn't find a definitive answer. In this example, I have RSUs that vest every month from my employer. Let's say I decide to sell 1 share of stock for a capital ...
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326 views

When an option expires does that constitute a buy or sell

A similar question recently asked about stock sales and option buys triggering wash sale rules. If an option expires, is that considered a buy/sale ? What I mean is: let's assume I have a call ...
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404 views

Wash Sale on Options trading

Does the Wash Sale rule apply to options trading? If I buy and sell the stocks in a loss, can I still trade the call options for the stock within 31 days of selling?
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434 views

How to navigate “wash sale rule” with RSU vesting each month?

I'm in a situation where I have a tranche of company RSUs vesting on the 1st of every month. For simplicity, here's what my scenario looks like: May Acquired 1000 shares on the 1st at $10/share. 400 ...
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184 views

Wash Sale Rule on Overall gain

Day 1: I purchased 100 stocks of ABC for 100$. The stock went down and I purchased additional 100 shares for say 80$. Now, my average is 200 shares for 90$. Day 2: The stock went up and I sold all ...
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183 views

Is this a way around the Wash Sale Rule?

This question is prompted by my answer to the question about wash sales. I'm not going to repeat everything in the question or my answer. The question had a simple answer: technically Maybe but as a ...
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Does selling shares within 30 days of purchase count as a wash sale?

Quoting IRS publication 550, A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you: Buy substantially identical stock or ...
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What are the downsides (impacting returns) of a short-term purchase & sale to cut the loss (other than wash sales rule)?

In the US, IRS wash sales rules indicate that a loss in security exchange cannot be claimed tax deductible in the same year income tax filing, if the transaction of purchases & sales takes place ...