Question 1a:
Say I bought 100 shares of stock A. I then sold all of it the next day at a loss. I can then deduct the loss as capital gains losses (up to annual limit)? Is this correct that if I sold all of it, how long I held it for doesn't matter in regards to capital gain losses?
if you have not repurchased replacement shares 30 days before or after the sale, the loss is reportable. it is a short-term capital loss. all short-term gains and losses must be netted. the same applies for long-term.
if both types are losses - then you have a maximum of $3,000 in deductible S-T capital losses
if there are net s-t losses and net l-t gains they too must be netted. if net L-T gains exceed net s-t losses you have a net L-t gain otherwise a net S-t loss limited to $3,000
if there are net s-t gains and net l-t losses - again they must be netted. if net S-t gains exceed net l-t losses you have net you have a net s-t gain otherwise a net l-t loss limited to $3,000
if there are s-t gains
1b. Same situation as 1a (100 shares of stock A). If I sell half of stock A (50 shares, then hold on to the other half). Then I sell the rest of it a few days later. Both sales are for losses and happen before 30 days have passed after buying A. Is it correct that both sales can be declared as capital gains losses or does one of them trigger wash sale rules?
as presented both losses would be deductible. there would be no wash sales assuming no "replacement" shares were purchased 30 days before or after each sale
Question 2:
Say I buy 100 shares of stock A on day 1. On day 4, I bought an additional 200 shares of the same stock.
2a. If on day 7, I sell all 300 shares at a loss, can I deduct the entire loss as capital gains or would any of it trigger wash sale rules and be disallowed?
the loss on the 300 shares would be deductible assuming no replacement shares are purchases 30 days before or after the date of sale
2b. If wash sale rules are being triggered for 2a, would waiting till day 35 to sell all of it at a loss lead to regular captial loss deductions and not be counted as wash sale disallowed?
there is no wash sale for 2a
2c. If I sold a portion of the 300 shares before day 35, i assume it counts as a wash sale?
nope no wash sale
2d. If after day 35, I sold part of the 300 shares, does that count as a wash sale?
nope no was sale
here's an example of a wash sale. on 2/1/2021 buy 100 shares. on 2/15/2021 sell 50 shares at a loss.
at this point, there is no wash sale. buy 25 shares on 3/6/2021, there is wash sale but only on 25 of the 50 shares sold. on 2/15/2021. but another 25 shares on 3/18/2021 no wash sale on the other 25 shares sold on 2/15/2021 becuase the purchase is outside the 30 day window
