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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.
1
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Accepted
Is The Wash Sale Definition Vague, Or Am I Reading It Wrong?
The IRS does not care about gains and losses within an IRA. The money was either already taxed, or will be taxed as income on withdrawal. Since there is not capital gain/loss in an IRA (as far as the …
6
votes
Why Wash-sale rule makes a difference?
Your wash sale example only has an impact if Day 3 and/or Day 4 are in January of the following year. If this all happened in June, there is no impact, you are right. If Day 3 or 4 are in January then …
3
votes
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IRS Tax Rules for Capital Gains on Sale of Stock
Wash sale rule is for stocks sold at a loss, so in the scenario you describe there is no issue with donating and re-buying.
If the value had dropped in your example it would make more sense to sell, …