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.

Filter by
Sorted by
Tagged with
20
votes
2answers
2k views

How to know if two ETFs are 'substantially identical' according to wash sale rules?

Wash sale rules are pretty straight forward when you're trading stocks directly. However, how are these rules applied to ETFs? Right now I own shares of CMF and want to do some tax-harvesting on some ...
15
votes
3answers
8k views

Wash Sales and Day Trading

Let's say a Day Trader buys and sells a stock on the same day and makes a loss of $1,000. Then she buys and sells the same stock the next day and makes a profit of $500. On the third day she files her ...
11
votes
1answer
484 views

Is it possible to dispute a wash sale?

I recently sold some short term VTI shares at a loss (specific shares, not FIFO). With the proceeds, I purchased SCHB. My brokerage firm has adjusted my cost basis on the VTI shares due to a wash ...
8
votes
1answer
467 views

Wealthfront tax loss harvesting + Vanguard target date?

I'm thinking of turning on Wealthfront's tax loss harvesting, but want to avoid any "wash sales". The only securities I have outside Wealthfront are Vanguard target date funds in some companies' 401k ...
7
votes
5answers
328 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 ...
5
votes
1answer
259 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’...
5
votes
2answers
559 views

How to realize capital gains before going from non-resident alien to resident alien in USA

I am a foreigner and will move to USA next year (2016) and want to optimize my tax situation beforehand. I bought stocks in 2009 which appreciated in value but I would still like to keep them. So my ...
4
votes
1answer
313 views

Wash sale rules between tax advantaged and regular accounts

I sold an investment in a standard brokerage account at a small loss because I needed the money for a down payment. I still think it is a good investment, can I buy the same investment in a standard ...
4
votes
2answers
741 views

How does the U.S. wash sale replacement stock rule work?

I am trying to understand how the replacement stock is selected when applying the wash sale rule. This is in the USA. I have scoured the IRS publications that seem relevant and am still unenlightened. ...
4
votes
3answers
274 views

Is my wash sale being calculated incorrectly?

This question is about wash sales of stocks in the United States. First transaction: On 06/27/2012 I purchase shares of a company for $1,000 and sell all of them for $2,000 at a profit of $1,000. ...
4
votes
3answers
882 views

Why does my brokerage show “adjusted due to previous wash sale disallowed loss” when I sold my entire position?

Over a month ago, I wanted to do some tax-loss harvesting. I wanted to sell a fund that had dropped in value and replace it with a more generic fund. Right before I sold, the fund paid out dividends ...
3
votes
2answers
347 views

Further Understanding of Wash Sale Rules

First let's make sure I understand a Wash Sale: Let's say I invest in 100 shares of ABC stock for $100 and after a week sell the 100 shares of ABC for $70, I've lost $30 which I can deduct from my ...
3
votes
3answers
249 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 ...
3
votes
1answer
174 views

Wash sale rule question

I bought stock A on October 1. I sold stock A on December 1 for a small profit. I bought stock A on December 7 planning to hold for a while but decided it was not a good idea and sold Stock A on ...
3
votes
0answers
82 views

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 ...
2
votes
1answer
87 views

When performing wash sale calculations does time of day matter?

For wash sales, I've read there is a 30-day window both before and after an opening trade during which a loss from a closing trade becomes a wash sale with respect to the opening trade's cost basis ...
2
votes
3answers
172 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
2
votes
2answers
881 views

Wash sale rules in India (NSE/BSE)

Is there any tax law prohibiting losses booked due to wash sales rule in Indian market? e.g. If I buy a Sun Pharm stock at 634. After 10 days, I sold it at 609.25 and buy again at 608.75 in the same ...
2
votes
1answer
77 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 ...
2
votes
1answer
159 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 ...
2
votes
2answers
2k views

Wash sale rule with dividend reinvestment

Let's say I buy some stock. Two weeks later it pays a dividend which is reinvested in fractional shares of the stock. The next day I sell all shares at a loss. Would this be considered a wash sale? ...
2
votes
2answers
2k views

Wash sales + restricted stock in USA: grant date or vesting date?

I have restricted stock from my employer. When determining wash sale rules, what is the appropriate date to use for when the stock is "acquired"? Is it the grant date or the vesting date? (and if you ...
2
votes
2answers
103 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, ...
2
votes
1answer
97 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) ...
2
votes
1answer
133 views

Wash sales and year end tax implications

Say I buy stock X on Monday, sell it on Tuesday for a $200 profit, buy it back on Wednesday, then sell it on Thursday for a $100 loss. The next week, I buy it again on Monday and sell it for another $...
2
votes
1answer
1k views

Is there a “reverse wash sale” rule? [closed]

Suppose I sell a stock that is eligible for LTCG treatment; but I replace those shares within 30 days (same no of shs) and furthermore treat the gain/loss on the sale of those shs as a short term sale....
1
vote
3answers
384 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. ...
1
vote
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, ...
1
vote
3answers
842 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 ...
1
vote
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 ...
1
vote
2answers
136 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 ...
1
vote
2answers
57 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 ...
1
vote
3answers
131 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 ...
1
vote
1answer
113 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? ...
1
vote
1answer
115 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 ...
1
vote
1answer
226 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) ...
1
vote
1answer
3k views

Does wash sale apply if I sell stock in profit and within 30 days rebuy and sell it at loss?

I am a a little confused with the wash rule statement that says "buying a share 30 days before or after". I understand the after. But the before is confusing. As an example: I buy 100 shares of A ...
1
vote
2answers
68 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?
1
vote
1answer
55 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 ...
1
vote
1answer
52 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 ...
1
vote
3answers
164 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 ...
1
vote
2answers
917 views

My Brokerage statement shows “Adjusted due to previous wash sale disallowed loss” what does this mean?

Here is my account history, trying to figure out what the W means in my history table. END - ENDEAVOUR INTL CORP COM NEW Legend says: "Adjusted due to previous wash sale disallowed loss." Can anyone ...
1
vote
1answer
109 views

When can you adjust for (and re-allow) a disallowed year-end (December) wash-sale loss?

If you sell an entire position (e.g. 100 shares in company X) at a short-term capital loss on Dec. 10th, and your broker reports an adjusted "disallowed wash-sale loss," can you: a) Re-purchase the ...
1
vote
0answers
28 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 ...
1
vote
0answers
75 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 ...
1
vote
0answers
87 views

Why is a lot being marked as a wash sale when all lots of that security were sold at a loss on the same day?

I'm going over my 1099-B from my brokerage and I'm trying to understand why some of the trades are being marked as Wash Sales while other's under similar circumstances aren't. Here's an example set ...
1
vote
2answers
105 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'...
0
votes
3answers
147 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 ...
0
votes
2answers
726 views

Wash sale rule impact on different scenarios between different types of accounts

When wash sale rule kicks in, then the capital loss is simply postponed by increasing cost basis to the later transaction where you again purchased similar replacement stock either 30 days before ...
0
votes
2answers
87 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 $...