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 question about repeated buying and selling at a loss

I got into investing last year and there is a repeated trade on a stock I made that is bothering me. I'm not sure I fully understand the wash sales rule. Most of the examples online discuss selling a ...
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How does wash sale rule affect protective puts?

TLDR: Do sales of long puts at a loss and purchase of underlying stock within 30 days qualify as wash sale rule? Let's say I am a long term investor on SPY, and I buy $1,000 of SPY every month on the ...
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Does the wash sale rule apply in reverse?

What if I sold an asset that will result in a profit, instead of a loss, but then buy it back within 30 days. Will this profit be taxable?
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Would I be able to avoid the wash sale rule if I buy back the security on January 1st after selling it on December 31st?

It would definitely be within 30 days, but it would be of next year. So would this successfully by pass the wash sale rule?
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Has anything changed since 2019 regarding selling shares within 30 days of purchase being deductible for tax purposes?

The upvoted answers to this questions, if correct, indicate that, under US law, if one buys and sells an equity within 30 days for a loss, and does not repurchase anything substantially identical ...
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Does the following trade history constitute a wash sale

2/17/21 bought 100 shares of FTFT at $9 a share 2/18/21 bought 100 shares of FTFT at $9 a share 2/25/21 bought 100 shares of FTFT at $5.45 a share. 12/1/21 bought 200 shares of FTFT at $1.50 a ...
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49 views

Wash Sale for stocks and FIFO taxes

I have a situation where I'm trying to avoid a wash sale and am trying to realize some losses by year end. Here's the situation: Jan 1st - purchase 100 shares of XYZ at $100 per share - $10,000 March ...
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Will selling a recent purchase at a loss trigger wash sales?

I have the following lots: 100 shares on 9/1/2020 for $20/share 50 shares on 5/1/2021 for $40/share 10 shares on 10/1/2021 for $35/share Currently the price is $30/share and I want to cut losses and ...
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Wash sale- Sell stock buy bonds?

If I sell stock of Company-X at a loss and immediately buy the bonds of Company-X, am I allowed to deduct any loss on the sale of stock on my taxes, ie would this be considered a Wash Sale?
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Is loss disallowed after wash sale involving IRA, but rebought in traditional brokerage first?

I've read horror stories about someone selling stock A for a loss in a traditional brokerage and rebuying the stock in an IRA. Their basis in their IRA does not ever adjust and they cannot ever ...
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Covered call selling and wash sale or potential IRS problems?

I have a stock position that went south really quick and I have been holding on for about 5 months now. My last average down was 4 months ago. My average price is $12 and the stock is currently ...
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Wash sale rule for me?

I am in US. First of all I didn't knew wash sale applies for multiple accounts. That is completely my silliness. I purchased 100 shares of company X at $10 each in account 1 on January 1. I sold 30 ...
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How does the wash sale rule apply when trades in quick succession net positive?

This is probably best illustrated with an example: Day 1: I buy 10x AAPL for $1000 Day 2: I sell 10x AAPL for $2000 ($1k gain) Day 3: I buy 10x AAPL for $1000 Day 4: I sell 10x AAPL for $500 ($500 ...
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Wash sale clarification on options trading

If I buy deep in-the-money put options, and sell not so deep in-the-money (higher strike priced) put options and if both expire worthless, will I not be allowed to deduct the loss incurred from the ...
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Wash sale rule impact of overall cost basis of long term investment [closed]

I'm new to investing and did not know there was a wash sale rule. I bought a stock as I had thought it was at its bottom and sold as it continued to drop. I then bought the stock back later as it ...
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Can IRS construe a Roth conversion to be a wash sale?

Should I do Roth IRA conversions after a market crash? I have too much money in my traditional IRA and not enough money in my Roth IRA. Both accounts use VTSAX. I have no intention of touching it any ...
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Thoughts on this wash sale scenario

I traded options and believe had several wash sales. Does it matter if they're puts or calls or sell to close or expired? Is it possible they're not wash sales as wash sales are not indicated on my ...
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wash sale rule for multiple lots

I am a bit confused by this specific scenario of buys, sells and how to calculate the cost basis for the lots I'm holding. This question is for USA tax purposes. Day1, buy 100 shares at $10 Day2, ...
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Wash sell issue. I’m a bit confused new to trading. Question is do I pay taxes on that disallowed as profit?

Do I pay taxes on only the $6000 or on both the 1.2mill and the 6000? USA
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Wash Sale Rule While Holding Initial Investment

I have a question for those familiar with the wash sale rule. I understand what it is, basically, if you sell shares of XYZ at a loss and buy it again within 30 days, you can't claim those losses on ...
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Help Determine Wash Sale-Bought and Then Sold the Same Lot within a Month (United States)

I did research on the previous posts but could not find an answer that matches my exact situation. I understand IRS definition of wash sale occurs when you sell or trade stock or securities at a loss ...
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Can a day trading taxable income be more than the actual capital gain?

I've day-traded (in USA) actively during 2020, mostly short trades. Never kept positions overnight, so carried no positions into 2021 (and, similarly, no positions were carried from 2019 into 2020. ...
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If I show a total loss for the year, will I be impacted by wash rule disallowed losses?

I tried day trading after losing my job. With a $25k initial investment, I traded heavily for a few months using margin. I was up about $5k and then took a huge hit on some options when the market ...
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Interactive Brokers Account Statement Shows Certain Short Term Capital Gain Losses as a Positive value

I have been actively day trading for a few months and recently have been investigating my account statements in a detailed manner. I am unable to fully understand what is sometimes occurring in the &...
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Why did Turbotax say that I made profit when I actually lost money?

This is the 1099 that I got from my broker. According to them, I lost about $9178 However, when I imported that 1099 file into Turbotax, it said that I actually earned $2562. This is very confusing....
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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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193 views

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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172 views

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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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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108 views

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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790 views

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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245 views

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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54 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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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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270 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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855 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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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 ...