It depends. See the two scenarios below.
- Yes, any one of the buys could have triggered the wash sale of the original shares. The sale of September 25th is a wash sale if you still hold some of the stock that was purchased on the 5th, 10th or 15th.
- No, if all of the same stock was fully disposed of when you sold the last lot purchased on the 25th. This assumes you no longer hold any of that stock.
The wash sale disallowed is not added to the net gain/loss rather it is adjusted and suspended so that it does not affect the total gain or loss for any pending wash sales. The rub is that the broker only knows when a wash sale occurs, not when a wash sale no longer exists. This can spill over between two tax years. Likewise you can have a wash sale during a tax year, and then fully dispose of the stock in the same year which would eliminate the wash sale rule for the final sale of the same stock. If this fits your situation, then you do NOT have a wash sale on September 25th.
Wash sales must always be tracked for basis by you.
@j g
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