Wash sales on December and tax implications.
Level 2

Wash sales on December and tax implications.

I was wondering if it  was possible to claim losses for this specific scenario:

Buy 100 shares of A on December 10th 2019 

Sell 100 shares of A for a loss on December 17th 2019 <- this would be a wash sale
Buy 100 shares of A on December 18th 2019 <- triggers the wash sale

Sell 100 shares of A for a loss on December 27th 2019
Don't buy anymore shares of A until February of 2020.

Does anyone know if in this particular case one would be able to claim losses if they close entire positions of share A before end of year?

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Level 15

Investors & landlords


@Onyux wrote:

Does anyone know if in this particular case one would be able to claim losses if they close entire positions of share A before end of year?


Yes, one would be able to claim the losses (since the positions have been closed out in their entirety) provided substantially identical securities are not acquired within the 30-day period after the last sale on December 27th.

View solution in original post

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Level 2

Investors & landlords

But if one were to repurchase on January 2020 and within the 31 days from the last sale they wouldn't be able to deduct for 2019 taxes right?

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Level 15

Investors & landlords

That is correct. 

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Level 2

Investors & landlords

Thanks for the replies 🙂

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