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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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Wash sale rule on sale of a stock for a loss

Does the wash sale rule also apply when you sell a position for a loss and one week later you buy it again but this time at a higher price?
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In the US, which shares should I sell if I want to keep the most compounding effect?

This is for the US. I have been doing DCA: Dollar Cost Averaging, so I have been buying Apple and Google (and some Amazon, QQQ, S&P500 ETF) regularly, perhaps $100 per day, in my regular personal ...
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Is it considered a wash sale if stock is bought twice within 30 days of sale?

Let's say I bought one unit of ABC stock on March 1, 2024 for $100 and another unit on March 2, 2024 for $100. I sold both units of ABC stock for $80 each on March 14, 2024. Assuming I don't buy ABC ...
nijanthanh's user avatar
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Do wash sales rule disallow losses if 100% of the stock is sold, all on the same day, within 30 days of buying lots, and no new shares are bought?

I bought multiple lots of stock A on 3 separate days, each about a week apart, so I have buys on 3 days. I sold all of it about a week later, and from the first buy to the final sale, less than 30 ...
L Hastings's user avatar
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Confused by the 'same day' wash same rule

Publication 550 states the following: Loss and gain on same day. Loss from a wash sale of one block of stock or securities cannot be used to reduce any gains on identical blocks sold the same day. ...
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Multiple, sequential wash sales [duplicate]

Am I doing this right? For context, I get monthly RSU vests from my company which auto-sell a few days later, so almost every sale at a loss is a wash sale. Consider the following series of ...
gv39's user avatar
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Is it a Wash Sale from a Capital Gains Perspective if I was to sell Nasdaq ETF and buy Nasdaq 100 ETF?

If I was to sell 100 units of ONEQ and use the proceeds to buy NDX, would I have any tax liability on the capital gains from a first sale or would it be considered a wash?
mathemagician's user avatar
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Wash sale and excess replacement shares

Let's say I had 10 shares of XYZ. On Dec 1 I sold 10 shares for XYZ for a loss ($1 per share, total $10). On Dec 2 I bought 20 shares of XYZ (single lot). So previous sale (On Dec 1) was a wash sale. ...
Andrey's user avatar
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1 answer
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Wash Sale Rule on a new repurchase and sale of the same stock

A newbie here! I have PayPal stock for over two years and my total return/losses is over -$2000 now. I bought and sold $700 of new stock a few days ago, for tiny profit, and I just found out about the ...
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How should holding periods / acquisition dates be adjusted as a result of Wash Sales?

From IRS Pub 550: Wash sales. Your holding period for substantially identical stock or securities you acquire in a wash sale includes the period you held the old stock or securities. This is ...
morsecoder's user avatar
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What happens to long-term capital losses that are transferred due to Wash Sale rules?

From Fidelity: According to the tax code, short- and long-term losses must be used first to offset gains of the same type. But if your losses of one type exceed your gains of the same type, then you ...
morsecoder's user avatar
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I have a question concerning wash sale rules pertaining to dividend reinvestment

I would like to sell shares of stock A to offset gains from other holdings this tax year. I had set stock A dividends to be used to acquire more shares of stock A. The last dividend reinvestment ...
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Wash Sales for Non-US Citizens

I am an Indian citizen residing in India. I will be opening a cash account through IBKR and day trade in the US markets(cash only, no margin). Will the wash sales law be applicable in my case, even ...
FloralFinger's user avatar
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How to apply Canada's superficial loss rule for multiple sales?

I know that a capital loss cant be claimed if you repurchase the asset within 30 days of the sell date. DATE ACTION SHARES TICKER CAP GAIN 1. Jan/01 BUY 1,000 MSFT - 2. Jan/...
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Why does Canada's superficial loss rule also include a clause for "30 days before the sale"?

According to the Canadian Revenue Agency: A superficial loss is when you, or a person affiliated with you, buys, or has a right to buy, the same or identical property (called "substituted ...
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Wash Sale Period Confusion [duplicate]

I am a bit confused by the language in the Wash Sale regulations regarding the purchase of the same security 30 days before or after. All the explanations that I read seem to agree that divesting of a ...
user124308's user avatar
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Is a wash sale that bad?

Using the following as an example, for any equity (stock): 1/15 BUY 10 @ $100 6/15 BUY 5 @ $50 6/20 SELL 10 @ $30 6/22 BUY 99 @ $20 Are 5 shares a wash sale, or 10 shares, 15 shares, or 99 ...
Chris's user avatar
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7 votes
3 answers
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Do wash sale rules apply for partial sales within 30 days?

I have already looked at this question and its answers, but I have a slightly different question. Suppose I buy 100 shares of a stock on July 1, and two weeks later, on July 15, sell 50 of those 100 ...
merlin2011's user avatar
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Should capital losses on RSUs sold for taxes be matched against retained shares in the original vest or only future vests?

My company uses a "Sell to Cover" strategy in order to withhold money for taxes. That can result in the following situation: I vest 100 shares on Day 1. The company sells 22 of these 100 ...
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Wash Sale Basis Adjustment When There Are More Replacement Shares

Consider the following scenario: On Jan 1 I bought 10 shares of XYZ for $10 each on Jan 1, and sold them for $8 each on Jan 2, resulting in a loss of $20 ($2/share) On Jan 10 (less than 30 days ...
user115619's user avatar
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3 answers
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better understanding wash sale rule

This is for USA tax purposes. I find wash sale rule simultaneously a simple and complicated concept. I kind of understand overall idea, but miss the details. Surprisingly, I couldn't find many ...
govordovsky's user avatar
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How to adjust cost basis for multiple wash sales for 1099

How do I adjust the cost basis for my trades that incurred a wash sale on my 1099. Do I total all of the wash sales and add to the cost basis of the last trade? see below image
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Why does my 1099-B show an amount on box 1g?

Early last year I incurred some wash sales. All of the securities involved in those transactions, however, were liquidated long (more than 30 days) before the end of the year. My assumption was that ...
user avatar
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Cost basis of "undetermined transactions" after wash sales

I have an "undetermined transactions" section on my 1099-b for a sale of the entire position of a given stock in Dec 2022 and am trying to figure out how to calculate the cost basis for it (...
yaren's user avatar
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Cross Brokerage Wash Sale Help Needed

The following trades happened in a month: Day 4: Bought 83 Shares of Company A using Fidelity Day 5: Bought 118 Shares of Company A using E-Trade Day 7: Sold 118 Shares of Company A bought in E-Trade ...
Ravin Abraham's user avatar
2 votes
1 answer
384 views

Wash Sale on Monthly RSU Vests

I haven't really sold any of my RSU's that I received from my company in the 5 years I've been there. To simplify the situation: I have 100 units at $50 from 2019. I have 100 units at $150 from 2022. ...
gran_profaci's user avatar
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2 answers
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Can a self-employed add a new mark-to-market account for day trading?

I am self-employed in USA. I am available during the stock trading time. I am thinking of starting day trading after a few months of preparation. I may begin with scalping. I will keep my current ...
peterB's user avatar
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5 votes
3 answers
354 views

Most cost effective way to realize profits?

Selling a security at a loss is subject to wash sale rules in the US, but selling a security at a gain is not. While they are rare, there are a few situations in which an investor might want to ...
Person's user avatar
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1 answer
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Tax loss - wash sale rule and mutual funds

I was reading up on tax loss harvesting because I recently sold some stock at a loss. I've know about the wash sale rule, but in my reading came across this information (emphesis mine) This means ...
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1 answer
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Is there a wash sale rule in the UK?

I've heard a lot about wash sales recently from YouTube videos by Americans. I don't know about, and can't seem to find any info on, wash trading in the U.K. (I'm not sure if what I'm about to refer ...
Matt W's user avatar
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3 votes
1 answer
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How do I control how dividends are reinvested in my 401(k)?

I have a 401(k) through Ascensus. I would like to do tax loss harvesting with an index fund I hold in my taxable account and I want to make sure there is no possible wash sale in my 401(k). Therefore, ...
Craig W's user avatar
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How to prevent a wash sale from ESPP share purchases and RSU vesting

Earlier this year I exercised (and held) ISOs my company offered. At the time, the FMV was fairly high but has since dropped. I am looking at selling my previously exercised shares and repurchasing ...
Hari's user avatar
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1 answer
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Is writeoff gone forever if I trigger a wash sale by repurchasing in an HSA?

I sold 20 contracts of XYZ call option spreads at a total loss of $25,000 in a taxable account. The next day I bought 10 shares of XYZ in my HSA (oops - I hadn't realized that this counts as a wash ...
personal_cloud's user avatar
1 vote
1 answer
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Does selling gainers and loser lots of stock trigger Wash Sale?

My employers gives me stock compensation every month. There is no day in the year I can sell my losing lots of stock without triggering the wash sale rule. Can I sell winnings and losing lots of ...
Enry's user avatar
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3 votes
1 answer
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Can a wash sale exist across calendar years?

If the sale and subsequent repurchase of a stock occurs in two separate calendar years, but within 30 days of each other, is that still considered a wash sale for tax purposes of the sale in the first ...
Hari's user avatar
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Extending the period for causing a wash loss

I sold a stock at a loss and when I buy it back cheaper I want that purchase to cause the loss to be a wash loss. Problem is that I might not get the lowest repurchase price within 30 days. So suppose ...
Paul's user avatar
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2 votes
1 answer
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wash sale for short-term loss?

Let's say I buy 1 share of stock X for $2, then sell that share back a week later for $1. The wash sale rules say that it's a wash sale if I buy the stock within 30 days before or after the sale. ...
aram's user avatar
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1 vote
1 answer
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Is The Wash Sale Definition Vague, Or Am I Reading It Wrong?

From Pub 550, page 56 (or so), "Wash Sales" is defined as: "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: ... ...
Shang Zhang's user avatar
1 vote
1 answer
112 views

If it is a margin call but I am lucky to buy back in IRA, is it considered a "wash sale"?

Due to the stock market going down, I got a margin call, and may be forced to sell a few thousand dollar worth of stocks. However, I am lucky enough because I ended an employment with an agency, and ...
Stefanie Gauss's user avatar
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Wash Sale information

I sold 100 shares at loss. Can I sell the put option NOW, which gets exercised after 31 days; is it considered a wash sale?
Prakash Mahajan's user avatar
3 votes
2 answers
1k views

wash sale with leveraged ETF

If a person sales regular ETF ( suppose QQQ) at a loss and buys a leveraged ETF on similar Index e.g TQQQ within 30 days, will the loss on QQQ be treated as wash sale ?
puzzled's user avatar
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2 votes
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Wash Sale - Selling RSU Shares Before Another RSU Vest

I currently have RSUs that vested three months ago where the the current market price is lower than the value of the stock when I acquired it. I'd like to sell these RSUs (at a loss of about -$5,000) ...
Lloyd Banks's user avatar
19 votes
2 answers
5k views

What's the point of the wash rule?

I don't understand the 30-day wash-rule. Someone please set me straight. So let's say I purchase 100 shares of Hot Stock X, for $100 apiece. So $10,000. Let's say that the stock goes down 50% on a ...
CodeOwl's user avatar
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2 votes
1 answer
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Can Wash sale be claimed in this situation in adults joint account

I had bought some sharers of an sector ETF in my joint account with my spouse. Now those shares (suppose quantity 250) are far below ( let say $40 per) our purchase price( let say $100). I am thinking ...
puzzled's user avatar
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1 vote
1 answer
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How would I calculate the wash sale permanently disallowed?

If I close a put position at a loss in an after-tax account and buy 1 share of the underlying in an IRA within 30 days, how much of the loss is permanently disallowed according to IRS wash sale rules? ...
riddle_me_this's user avatar
1 vote
1 answer
130 views

Within thirty days I buy 1 share of NVDA at 210 and sell for 215 the same day. What is my cost basis for that share?

I am trying to understand the implications of wash sale as it affects gains and repurchase at higher price. I buy 1 share of NVDA at 200 and the sell at the same exact price. Within thirty days I buy ...
tashfeen's user avatar
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Crypto Wash Sale rule

There are various sources indicating that in the United States, the Wash Sale rule does not apply to Cryptocurrencies as they are considered property rather than securities. Does that mean that it is ...
NingNing's user avatar
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Calculate wash sales deferred loss unequal shares

How do you calculate the deferred loss from the following: symbol Buy & Sell date QT Proceeds Cost Gain/Loss XYZ 2/20/21 50 300.5 320.5 -20 XYZ 2/20/21 30 165.8 196.8 -31 XYZ 2/20/21 3 14.75 ...
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3 answers
1k views

Does Wash Sale Rule Apply If Gain?

Recent market volatility had me trying to explain wash sales to someone and I realized I wasn't completely sure about the following: Day 1) Sell a stock position at a loss Day 2) Stock price ...
AA040371's user avatar
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1 answer
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What do I need to do to exit the wash sale so the loss would have been allowed?

This past year I started heavy day-trading of option contracts. I was aware of the wash sale rule... however when I received my 1099-B the wash-sale calculations are significantly different than I ...
SoonGuy's user avatar
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