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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1answer
106 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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173 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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37 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
88 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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71 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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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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42 views

Wash Sale on stocks sold for average gain [duplicate]

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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1answer
99 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
138 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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335 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
51 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
57 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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58 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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can closing covered call and opening a new coverd call trigger 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
62 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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2answers
63 views

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
78 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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251 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
167 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
135 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
148 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
158 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
60 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
139 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 ...
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2answers
110 views

How does the US wash sale rule work in this specific case?

I have a question about wash sales. Here's the scenario: let's say I'm trading XYZ with the following transactions: December 10, 2019, Buy 100 shares of XYZ [Lot 1] @ $100 each December 17, 2019, ...
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2answers
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IRS Tax Rules for Capital Gains on Sale of Stock

Bob has a stock that is worth 50% more than what Bob paid. Bob would like to avoid paying tax on the gain so he donates 10% of the shares shares to a charity through a donor-advised fund. Bob decides ...
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1answer
170 views

Can buying covered calls to close trigger a wash sale

I did some tax loss harvesting last week and am hoping I didn't incur a wash sale this week. Any thoughts would be greatly appreciated. I sold a portion of CELG held long term for a significant ...
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1answer
209 views

Wash Sale between RSU and ESPP

I sold some RSUs at a loss of about ~5K on 12/27/2018 but am scheduled to receive the same stock via ESPP on 12/29. Will this ESPP transaction disqualify the ~5k capital loss on RSUs as Wash sale? If ...
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3answers
178 views

Why is VTI a wash sale, but VV is not?

Here is my Fidelity YTD tax report on short-term losses. Why does it show a wash sale disallowed loss for the VTI holding, but not for the VV holding? 2018 YTD ST Losses
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1answer
99 views

How does the “wash sale” rule work while selling for long term capital gains?

Lets take the following example to understand my question. I bought 100 stocks of company ABC at a price of $10 per stock on 1st May 2017. On Dec 1st 2018, I buy 100 stocks of the same company (ABC) ...
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3answers
414 views

Is the wash sale rule canceled by something if you don't hold the stock in question for 30 days?

Suppose an inverstor in USA buys 100 shares in XYZ for $50 each. Two weeks later XYZ is doing terribly, and the investor gets cold feet and sells the shares for $40 each, at a total loss of $1000. ...
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3answers
873 views

Can you explain how this disallowed wash sale loss is calculated?

I can see that the first row of the data shows $120.00 in cost and $76.93 in proceeds, which results a -$43.07 gain. With only this set of trades, how is it determined that $43.07 is the wash sale ...
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1answer
58 views

Wash sale example

I purchased 100 shs of Apple on 10/10 and have an unrealized loss as of 11/13. If I sell the 100 shs today and do not purchase Apple until 12/20 can I record the loss in 2018
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2answers
92 views

How to understand wash sale loss and disallowed loss

I am new to trading and I do not understand this. I bought 31 stocks of ABC for $7,658.85 and then sold 31 for $6,346.56. On the same day I bought 35 stocks of ABC for $7,160.00 and then sold for $...
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2answers
206 views

Is this a wash sale?

I bought 100 shares of XYZ(January 2017) at $1. The stock then dropped to .50c over the next 12 months. I decided to average down and buy 50 more shares a year later on (January 2018) at .50c, ...
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1answer
118 views

Wash Sale Treatment Using Different Tax Advantaged Accounts [duplicate]

As a follow-up to this question: Wash sale rule impact on different scenarios between different types of accounts Do HSAs and 401k's fall under the same treatment as IRAs when computing tax losses? ...
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1answer
527 views

Can closing a position trigger the wash sale rule?

I'm wondering if there is any scenario where closing a position could trigger the wash sale rules. For example, would the wash sale rule apply to the transactions in the following scenario? In June ...
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2answers
239 views

Does this trigger a wash sale

I have accumulated a number of shares of XYZ over the years through purchases and dividend reinvestment. The latest dividend reinvestment took place within the past week. I would like to sell part of ...
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2answers
111 views

U.S. wash sale rules involving sells using specified lots

I'm preparing my 2017 US income taxes and have received a 1099-B from the broker in my employer-sponsored accounts that includes several short-term capital losses that are designated as wash sales. I'...
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2answers
110 views

Does exchanging funds from a S&P500 index fund into a Russel 3000 index fund at a loss constitute a “wash sale” if losses are claimed?

I converted a 'lot' of my Russel3000 index into an S&P500 index (first time investing in the SPY index) for a capital gain at the end of 2017 (for purposes of tax gain harvesting). A few days ...
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2answers
212 views

Wash Sale Matching after selling for profit

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 ...
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3answers
389 views

Wash sale repetition through chaining

Wash sales seem to have very weird behavior, here's an example. It uses all the same stock, and there are no other holdings besides those mentioned. Day 1, buy 100 shares for $200 each, so $20,000 ...
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2answers
759 views

Replacement shares and wash sales

Assume I do the following transactions: Buy 1 share of XYZ for $100 and sell it for profit at $110 on January 1. Buy 3 shares of XYZ at $100 and sell them for a loss at $90 on January 2. Buy 1 share ...
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4answers
871 views

Having a wash sale ever good?

I'm wondering if a wash sale would ever be beneficial to someone. My theoretical scenario is that someone is not making much this year, and so they day trade and go in and out of stock, making both ...
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1answer
265 views

Can I undo a wash sale?

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’...
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1answer
117 views

How does the wash sale rule work in this situation?

I knew how wash sale work in simple example. But how about in this example: I lost $1000 for selling Share X. Within 30 days, I purchase it again, this time I gain $500 for selling it. Again, within ...
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2answers
111 views

Does wash sale apply if I buy stock on 2 two different dates and sell it later

Consider the following scenario. I buy 100 company ABC stocks at $100 each whose worth is $10000 on jan 1 I buy 50 company ABC stocks at $70 each whose worth is $3500 on jan 10 I sold 150 company ...
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4answers
571 views

What is the purpose of the wash sale rule?

I understand the basics of what a wash sale is, and in particular that it prevents an investor from realizing a capital loss through a temporary sale of a security in order to offset a capital gain. ...
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1answer
238 views

Can my accounting for Tax Basis differ from my broker's

I recently found out that my broker uses FIFO (first in, first out) accounting when I sell shares by default (as apparently do most brokers), whereas I had hoped for LIFO (last in, first out) ...
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0answers
77 views

Can a single buy wash with multiple sells?

Once a wash sale is triggered by a buy, that buy's basis and holding period are adjusted. The basis is increased by the amount of disallowed loss that matched with it (let's assume 100%). The ...