Question about Wash Sales.....

[gopunk]

it is a wash sale if i buy and sell a stock, and have bought the same stock 30 days before or after the sale, right?

and if you buy and sell for a loss the first time, then buy it back and sell for a gain, you would add the loss from the first transaction to the basis price of the second transaction, right?

i just want to make sure.... if you buy and sell for a gain first, then buy and sell for a loss, should the loss be added the basis price of the first transaction, even though the first transaction happened before the second?

thanks

 

[gopunk]

bump

 

[gopunk]

surely somebody knows...

 

[BillGates]

Is that Spanish?


(Free Bump )

 

[DaveSimmons]

Have you tried fool.com? I buy-and-hold so I haven't ever actually sold any of my funds

 

[thebestMAX]

Dificult to get just right so do a search on Google. Lots of clear explanations there.

 

[CPA]

Pretty much you are correct.

You cannot claim the loss on the sale as a deduction.

But, and this is good news usually, you have to bump up the basis of your new stock by the amount of the loss on your previous sale. this could allow you to show a loss when you eventually sell the stock.

Now on your third example, the way I read the code, these would be considered two seperate sales, neither one being a wash sale. A wash sale only occurs if your first purchase resulted in a loss. So no you cannot adjust the basis of your stock if the first buy was a gain.

 

[gopunk]

Originally posted by: CPA
Pretty much you are correct.

You cannot claim the loss on the sale as a deduction.

But, and this is good news usually, you have to bump up the basis of your new stock by the amount of the loss on your previous sale. this could allow you to show a loss when you eventually sell the stock.

Now on your third example, the way I read the code, these would be considered two seperate sales, neither one being a wash sale. A wash sale only occurs if your first purchase resulted in a loss. So no you cannot adjust the basis of your stock if the first buy was a gain.

ah i see.. thanks