Can someone explain what happens in the following scenario? I've read up on the wash sale rule, but it's still confusing in the instance that you don't repurchase shares after your sell.
1) Jun 1st: Purchase 100 Shares of Stock ABC at $100, total 10,000
2) Jun 15th: Sell 70 Shares of Stock ABC at $80, total 5,600; loss of $1,400. (Wash sale activated due to recent purchase & sell, thus cannot deduct this loss of 1400)
From what I understand, the cost basis of the leftover 30 shares is increased. How much is the cost basis increased by?
Assuming price remains at 80/stock of ABC,
What happens if I sell another 20 stock of ABC before June 30th?
What happens if I sell all my leftover 30 stock before June 30th? Will I be able to deduct any of the losses?
Thanks!
