JohnB5677
Employee Tax Expert

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If you sell a stock at a loss and purchase it or a derivative back within 31 days it will create a wash sale. 

 

That loss then carries over to the new purchase and is added to the cost basis of the newly purchased stock.  

 

If you sold the stock or derivative in the same year you should have gotten the benefit of the higher basis.

 

Your broker should keep track of this, and it should be reflected in the future cost basis for profit/loss purposes

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