buyer wrote: ↑Tue Jan 25, 2022 12:08 am
Fidelity reports "wash sale" for the 1/4 and 1/5 lots and "disallowed loss" for their losses.
The 1/3 lot has been partially "adjusted due to previous wash sale disallowed loss" (marked with "w" after the dates acquired).
Would appreciate help interpreting. Are these the "inaccurate" or "irrelevant" wash sales that have been discussed?
Yes, the two "wash sales" Fidelity reported are the "irrelevant" kind that have been discussed. (Nice, clear documentation of the accounting, BTW.)
You can tell by the cost basis adjustments. The actual cost paid per share for the 1/3/22 lot is $71.31.
The single share of the 1/3/22 lot sold with an adjusted basis had its basis adjusted upwards by $2.29. So you realized the $2.29 loss disallowed from the sale of the 1/5/22 lot with that sale, and that loss is allowed and reported as such.
The 4 shares of the 1/3/22 lot sold with an adjusted basis had the basis for the 4 shares adjusted upwards by $12.16. So you realized the $12.16 loss disallowed from the sale of the 4 share lot of 1/4/22 with that sale, and that loss is allowed and reported.
So in the end, all your losses were realized and allowed. The end result is the same as if there were no wash sales reported and no cost basis adjustments. That's a classic case of an irrelevant wash sale.
(Some brokers might not report any wash sale for these same transactions. So is it a true wash sale, or not? It seems to depend upon the broker.)
The only part that confuses me is the extra $5.54 in net ST losses that shows up in the YTD summary at the top. Did you have another transaction with a small loss already this year?
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