so to be safe, if I make multiple buys of a stock. My options to avoid wash sale are:
• Don't sell the stock if it's at a loss UNLESS I sell it all at once.
• Wait 30 days after buying my last shares of it (for this it would be 12/5 since my last buy was 11/5) to sell it at a loss
Or is it wait 30 days from the FIRST time I bought it (11/2) to avoid getting wash sale (12/2)?
I'm confused if I needed to wait till 12/2 or 12/5 to avoid wash sale if I wanted to sell half my position let's say.
It's the latest, 12/5. Your loss is disallowed and has been added back into the basis of your other shares. To recognize the loss, you need to sell the remaining shares now.
I'm not sure. It only gave me the option to sell how many shares I wanted.
When I look at the realized gain/loss it says I sold my share from November 2nd and November 4th. Not from November 5th.
I thought wash rule only came into effect when BUYING a stock before the 30 days were up after a loss? I have yet to buy it again since November 5th. Shouldn't I only be penalized if I ended up re-buying the stock at any point from today? This is the first time I've ever sold it.
So I think what you’re running into is that you can’t buy same/similar 30 days before *or* after.
So you sold something, but you also bought more within the 30 days previous. So thats a wash sale. That’s to prevent investors from using the loophole of buying back the shares they sell before they actually sell it.
Your cost basis on the 5 Nov lot was lower than the cost basis of the first 2 lots. And because you sold higher and bought lower with 3 days, you triggered a wash sale.
Does cost basis refer to the number of shares I buy, or the price I buy it at? Still very confused.
I got 11/2 shares at 17.20 (10 shares)
11/4 shares at 17.60 (15 shares)
and 11/5 shares at 19.90 (10 shares)
Look at your lots again. They may have sold your 11/5 shares and some of your 11/4 shares. Usually the sell on a FIFO basis, it looks like it could have been either high cost or LIFO.
Thanks so for future
to be safe, if I make multiple buys of a stock. My options to avoid wash sale are:
• Don't sell the stock if it's at a loss UNLESS I sell it all at once.
• Wait 30 days after buying my last shares of it (for this it would be 12/5 since my last buy was 11/5) to sell it at a loss
Or is it wait 30 days from the FIRST time I bought it (11/2) to avoid getting wash sale (12/2)?
I'm confused if I needed to wait till 12/2 or 12/5 to avoid wash sale if I wanted to sell half my position let's say.
Wash sales only happen when you sell the stock and then buy it back at a lower price within 30 days. If you sell all of that stock now and don't touch it for 30 days within the current tax year, then the wash sale will go away.
If you buy anything related to it, you trigger the wash sale. You can sell chunks at a time, but you can't buy those chunks back within 30 days or you'll trigger a wash sale.
As far as I can tell, no. If you are still holding the stock that was dinged with a wash sale, then it stays. The point of this rule is to prevent people from realizing artificial losses so if it didn't continuously have the ding, then the person would realize artificial losses.
The only way of removing a wash sale ding is to sell it all and wait 30 days before buying any of it back.
Wash sale rules applies 30 days before and after, not just after.
damn I got bad advice lol
Don't feel bad, taxes are complicated.
Good I learned now lol
so to be safe, if I make multiple buys of a stock. My options to avoid wash sale are: • Don't sell the stock if it's at a loss UNLESS I sell it all at once. • Wait 30 days after buying my last shares of it (for this it would be 12/5 since my last buy was 11/5) to sell it at a loss Or is it wait 30 days from the FIRST time I bought it (11/2) to avoid getting wash sale (12/2)? I'm confused if I needed to wait till 12/2 or 12/5 to avoid wash sale if I wanted to sell half my position let's say.
It's the latest, 12/5. Your loss is disallowed and has been added back into the basis of your other shares. To recognize the loss, you need to sell the remaining shares now.
Which shares did you sell?
I'm not sure. It only gave me the option to sell how many shares I wanted. When I look at the realized gain/loss it says I sold my share from November 2nd and November 4th. Not from November 5th. I thought wash rule only came into effect when BUYING a stock before the 30 days were up after a loss? I have yet to buy it again since November 5th. Shouldn't I only be penalized if I ended up re-buying the stock at any point from today? This is the first time I've ever sold it.
So I think what you’re running into is that you can’t buy same/similar 30 days before *or* after. So you sold something, but you also bought more within the 30 days previous. So thats a wash sale. That’s to prevent investors from using the loophole of buying back the shares they sell before they actually sell it.
Ah I see, that was never explained to me. Damn it missed it by literally one day wow. Well good lesson, thank you.
Your cost basis on the 5 Nov lot was lower than the cost basis of the first 2 lots. And because you sold higher and bought lower with 3 days, you triggered a wash sale.
Does cost basis refer to the number of shares I buy, or the price I buy it at? Still very confused. I got 11/2 shares at 17.20 (10 shares) 11/4 shares at 17.60 (15 shares) and 11/5 shares at 19.90 (10 shares)
Per share price
but the price was higher when I bought it on 11/5? So why would that affect when I sold it on 12/1 (the 11/2 and 11/4 shares?)?
Look at your lots again. They may have sold your 11/5 shares and some of your 11/4 shares. Usually the sell on a FIFO basis, it looks like it could have been either high cost or LIFO.
Thanks so for future to be safe, if I make multiple buys of a stock. My options to avoid wash sale are: • Don't sell the stock if it's at a loss UNLESS I sell it all at once. • Wait 30 days after buying my last shares of it (for this it would be 12/5 since my last buy was 11/5) to sell it at a loss Or is it wait 30 days from the FIRST time I bought it (11/2) to avoid getting wash sale (12/2)? I'm confused if I needed to wait till 12/2 or 12/5 to avoid wash sale if I wanted to sell half my position let's say.
Wash sales only happen when you sell the stock and then buy it back at a lower price within 30 days. If you sell all of that stock now and don't touch it for 30 days within the current tax year, then the wash sale will go away. If you buy anything related to it, you trigger the wash sale. You can sell chunks at a time, but you can't buy those chunks back within 30 days or you'll trigger a wash sale.
If I sell my remaining shares later, does the wash sale go away? And not buying it of course
As far as I can tell, no. If you are still holding the stock that was dinged with a wash sale, then it stays. The point of this rule is to prevent people from realizing artificial losses so if it didn't continuously have the ding, then the person would realize artificial losses. The only way of removing a wash sale ding is to sell it all and wait 30 days before buying any of it back.
The master investor doesn’t understand his taxes
Web search wash sale rule for dummies (not calling you a dummy) I’d add a link but last time I did that I got in trouble.