JohnB5677
Expert Alumni

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If we say the purchase 2 years ago is Lot 1, and the one 2 weeks ago is lot 2.

 

When you sold Lot 1 at a loss it triggered the possibility of a wash sale.  If lot 2 was purchased within 30 days before or after the sale of lot 1 you do have a wash sale and no loss can be taken, but it will be added to the basis of lot 2.  When you sell Lot 2 the profit or loss will be evaluated based on the new cost basis.

 

Additionally, shares at different brokers are considered in total for tax purposes (wash sales). You cannot take a loss in one account and then replace them with substantially identical security in another account (within the 30-day window before or after the loss date).

The IRS considers First In First Out.  If you sold Lot 2  it would be considered as if you were selling Lot 1 for tax purposes.

 

This all causes mental gymnastics, and when possible should be avoided.

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