@Jun1023 wrote:
What happens to cost basis at this point?
The $2,000 disallowed loss is added to the basis of the remaining 100 shares. So the basis of the remaining 100 shares is now $12,000.
@Jun1023 wrote:
What happens if I sell the rest of the 100 shares, do I get to claim a loss or will it all be counted as a wash sale and also no cost basis adjustment?
If you sell the remaining 100 shares at a loss, and do not buy any other shares of ABC within 30 days before or after the sale, it is not a wash sale. You will claim the loss, based on the $12,000 basis. If you sell at a gain, of course, you pay tax on the gain. But the gain is based on the $12,000 basis, not the original $10,000 purchase price, so your taxable gain is $2,000 less than it would have been if you did not have the wash sale.
@Jun1023 wrote:
More broadly, what should I do?
It's not clear what you have actually done, so it's hard to say what you should do. If you have already sold some shares, and are holding remaining shares, you should decide whether to sell or continue to hold the remaining shares based on how you think the stock will perform. To avoid further complications, if you sell the remaining shares, you should not buy any shares of ABC within 30 days before or after the second sale.
If you have further questions, you will get a more accurate and useful answer if you tell us your actual situation, instead of a made-up or simplified scenario.
