the wash sale rules say if you sell a security at a loss and 30 days before the sale, the date of sale and 30 days after if you acquire substantially identical securities, the loss is not allowed. assuming a tax deferred account is not involved (purchase of substantially identical securities in an IRA account can trigger a wash sale. what's worse is there is no basis adjustment, so the loss is permanently lost. Otherwise that loss gets add to the tax basis of the substantially identical securities that caused the wash sale. so if those are sold without creating another wash sale the loss is finally realized. However, the holding period of the original securities is tacked on so yo can convert a short-term loss into a long-term loss
I would think the net loss of -20K excludes the wash sale losses because you can't take them.
