Simple question after discussion with friend…
Scenario 1: I buy 10 shares of FB today at $100 sell all 10 shares at $90 in 5 days for a loss of $100. Is this a wash sale?
Scenario 2: same as scenario 1 but I sell 5 shares instead of all 10 for a total loss of $50. Is this a wash sale?
Wash sale question
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Re: Wash sale question
Neither scenario is a Wash Sale. They are simply short term losses.
Here’s a Wiki on Tax Loss Harvesting that discusses Wash Sale scenarios.
https://www.bogleheads.org/wiki/Tax_loss_harvesting
Cheers
Here’s a Wiki on Tax Loss Harvesting that discusses Wash Sale scenarios.
https://www.bogleheads.org/wiki/Tax_loss_harvesting
Cheers
- arcticpineapplecorp.
- Posts: 15080
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Re: Wash sale question
do you have any replacement shares for either the 10 you sold in scenario 1 or the 5 you sold in scenario 2?
if you bought no replacement shares within the 30 days prior to or 30 days following when the 10 or 5 shares were sold, respectively, then there can not be a wash sale.
if you bought no replacement shares within the 30 days prior to or 30 days following when the 10 or 5 shares were sold, respectively, then there can not be a wash sale.
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Re: Wash sale question
About 90% of anything you need to know about wash sales is summarized clearly and concisely in the first five of the articles on wash sales at Fairmark.com: The Wash Sale Rule.DCA2021 wrote: ↑Fri Oct 22, 2021 8:19 pm Simple question after discussion with friend…
Scenario 1: I buy 10 shares of FB today at $100 sell all 10 shares at $90 in 5 days for a loss of $100. Is this a wash sale?
Scenario 2: same as scenario 1 but I sell 5 shares instead of all 10 for a total loss of $50. Is this a wash sale?
The fourth article, Wash Sales and Replacement Stock, addresses the question arcticpineapplecorp. posed. The thing is, it's not always obvious what constitutes replacement stock — or more importantly, what the IRS considers replacement stock.
The examples in the fourth article should provide clear answers to the OP's questions.
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