Let me provide an example
I bought 10shares of Xyz on Jan 2020 for 100$ each and sold all the shares on March 1st 2022 for 50$ each. Repurchased 100 shares of Xyz on March 28th 2022 using my non-taxable retirement account. This caused a wash sale.
Wash sale causes basis readjusted so that I can recover the loss/gain when the readjusted basis shares are sold out.
Now I have sold the 100 shares on Xyz in my retirement account on Nov 1st 2022 for 50$. Since Nov1st transaction was in non-taxable account, any basis change due to March1st transaction doesn’t allow me to claim 50$*100 capital loss.
Basically I cannot claim 5000$ in capital losses . Wash sale shouldn’t have caused a permanent loss(inability to claim the capital loss in my tax return) to me but only temporarily postponed it to future sale transaction.
Since I have sold all the shares which created the wash sale, am I allowed to readjust the basis for March 1st transaction??
Thanks
