@AmyC ,
Okay, I have done a lot of further research and looking into this situation and I believe I have finally figured it out, and also understand the process in which you were explaining to me. I spent some time on the IRS website publication that you referenced - thank you very much for sharing that info.
Here is what I came up with & would love if you would take a peak and let me know if I am on the right track now, and if the connecting/matching of shares is done properly (all contacts are standard options that represent 100 shares):
Essentially, since sold on same day, we start with 8/19, it is a wash sale to 3 different buys (two 11/16s and 12/5), but according to chronological rules, we go with which tool place first, correct? That is the 11/16 that was sold on 1/30, it was bought before the other 11/16, so basis and date of 8/19 is added to that.
Then, we look at the other 11/16 that was sold on 12/16, it is also a wash sale to the 12/5 trade (only one left to match too). We add the date and basis to that. Then we look at updated ones. The one sold on 12/23 is ended because no buys 30 days before or after 12/23; it can be recognized on 2022 taxes. However, the one sold on 1/30/23 will obviously have to be recognized on 2023 taxes, and will end the wash sale AS LONG as NO BUYS by 2/30/23.
-8/19 is a wash to 11/16 (bought first, sold 1/30/23)
-11/16 is a wash to 12/5 (this 11/16 was bought after, even though same day)
-8/19 carries to 2023, and will end if i don't buy more 30 days before or after
-11/16 that carries to the 12/5, well it was sold 12/23, and it can be recognized in 2022 because I have no other buys from 11/23-1/23 (other then itself) - its done (aka no other shares to match to because the othe was already matched)
I know that I have gotten extremely detailed here, but hard not too to be sure we are on the same page. If you could quickly review, I know your time is valuable and answer the question - do you think I have done this properly, I would again, be so grateful!
M. Dillon Smith
