No, not exactly
If your loss was disallowed because of the wash sale rules, add the disallowed loss to the basis of the new stock or securities. Your holding period for the new stock or securities includes the holding period of the stock or securities sold.
This adjustment postpones the loss deduction until the disposition of the new stock or securities.
For example: You buy 100 shares of ABC stock for $1,000. You sell these shares for $750 and within 30 days from the sale you buy 100 shares of the same stock for $800.
Because you bought substantially identical stock, you cannot deduct your loss of $250 on the first sale. However, you add the disallowed loss of $250 to the cost of the new stock, $800, to obtain your basis in the new stock, which is $1,050.
Please note, your broker may be making these adjustments on your behalf automatically, so you may not have lost any basis in wash sales. Contact them to get additional information about your account.
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