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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47 views

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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44 views

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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21 views

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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791 views

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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19 views

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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132 views

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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1answer
110 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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41 views

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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54 views

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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79 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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136 views

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
82 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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62 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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1answer
49 views

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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1answer
67 views

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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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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1answer
263 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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1answer
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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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109 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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1answer
47 views

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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73 views

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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2k views

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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1answer
868 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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1answer
131 views

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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204 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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0answers
270 views

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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1answer
192 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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329 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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1answer
398 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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1answer
135 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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2answers
172 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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5answers
1k views

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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1answer
55 views

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 ...
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1answer
62 views

Transfer small amount of securities

I am considering transfer a small amount of securities (about $1300~$1400 in market value now) from 1 account to another. The ACATS will cost me $75 which is rather large relative to the amount being ...
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78 views

basis adjustment on wash sale on underlying or option

Transaction1: I bought 200 QQQ ( ETF) at about $160 in Jan 2019, paying out about $32k Transaction2: I sold two calls on QQQ ( QQQ190628C00170000 ) for expiring on June 28, 2019 for a strike price ...
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1answer
637 views

Can closing a covered call and opening a new covered call trigger a wash sale?

In Jan 2019, I bought 200 QQQ (ETF) at about $160 and also wrote two covered calls for June 2019 at 170 (higher than the last day price) netting a small premium. Now QQQ is at about 185 so it will be ...
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1answer
754 views

Does reinvesting dividends after selling for a loss cause a wash sale? [duplicate]

I sold some fund shares with high turnover on my personal investment account with the intent of buying something similar later on my IRA account. However, after I sold (and within 30 days), I ...
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When I am continually trading an asset, when does each wash sale loss get applied?

Let's say I buy 20 shares of stock at $100 each, and later sell half of those shares at $90. Less than a month later, I buy back 5 shares of the same stock at $95. The stock then rises to $101 and I ...
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1answer
282 views

Are two options ever too similar for taxes?

If I buy an option, wait 3 months, sell it, and then buy it back the next day, "wash sale" rules will apply. But, what happens when these three actions use slightly different options (e.g., strike ...
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3answers
569 views

As a short term trader, do I personally have to keep track of every wash sale for tax purposes? [duplicate]

New to trading, trying to understand how wash sales apply to short term trades that occur in the middle of the tax year. Consider the following scenario: Day 1: Buy 100 ABC for $10 Day 2: Sell 100 ...
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3answers
197 views

Would the following trade scenario trigger a wash sale?

I am new to stock trading and am confused by the usage of the word "before" in the wash sale rule. There is one scenario in particular that I am confused on. For simplicity's sake, let's assume the ...
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3answers
251 views

Sequential Wash Sales

Consider these transactions all with the same stock: Buy 100 shares for $1000 on Jan 20, 2016 Sell 100 shares for $ 200 on Feb 20, 2018 Buy 100 shares for $ 100 on Feb 21, 2018 Sell 100 shares ...
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3answers
192 views

Why Wash-sale rule makes a difference?

I have been reading the wash-sale rule. I get the concept, but I do not get why this rule exist or needed. To me, in the end, a person would pay the same amount of taxes with or without create ...
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2answers
808 views

Can I recover from wash sale after closing the entire positions?

I have a question about wash sale. When I sold part of my stock A, I triggered wash sale then I got an adjusted cost base for the remaining stock A, say, $1000. What I found on the internet is that, ...
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1answer
69 views

Wash Sales - Applied to Options

Does anyone know how to account for wash sale that attached based on purchasing options where the last transaction was the purchase of an option that expired worthless? The issue is that there is no ...
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1answer
438 views

Wash sale rule on option trade

I sold a covered call for a March expiration that has gone in the money (if executed, the sale would be a loss.) If I sell an out of the money put on the same stock more than 30 days before the shares ...