The previous $50 loss is already added to the cost basis to reduce any future gain or increase a loss simply because you already added it to your cost basis.
- In your example the cost basis would be $100 ($10x10) minus selling price of $20 = $80 loss
- The fact that we added the $50 to the cost basis creates the final and total loss of $130.
No, you cannot add it again to the loss because it is already accounted for by an increased cost basis.
In your case everything was handled very close together so you aren't dealing with the full 60 day window, which is the purchase of the same stock 30 days before the sale and 30 days after the sale.
Your statement: Shouldn't the phrasing be, "60 day window unless you sold all the assets bought during that time period and not purchase any additional ones in the +30 day window" or was that what you mean in that sentence "if you did not purchase any additional stock with in the 60 day window".
- Yes, that's exactly what I meant. And you are making sense.
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