I learned the hard way with my first wash sale in 2021. Reluctantly hoping the stock would reverse, I have been holding the stock ever since. Now I am clearly stuck holding the bag. I originally thought I could use this as a tax write off until I was ready to let go of it, but now I am realizing a wash sale is in place to prevent this.
I am willing to cut my losses at this point, but the stock is much lower than when I first purchased it and it is steadily going up. Will the broker/IRS consider me buying more (~2 years after wash sale requirements of 31 days) at a lower rate part of this wash sale or is this a good time to make up for my losses (assuming it continues to rise)?
What are the tax stipulations on taking a loss on an investment from 2 years ago that was considered a wash? Is there any benefit to selling this before EOD since it was considered a loss?
I have seen a lot of post on "repairing" a wash sale, but I have not seen any in regard to buying additional shares after the fact. Thanks for the comments and for sharing any other suggestions/advice on what to do with this before end of year.
