https://www.investor.gov/introduction-investing/investing-basics/glossary/wash-sales"
@Critter-3 So like a Swing Trade? If I bought say some stock last week and then bought another set of the same stock yesterday. Sold the original set yesterday and then sold the second set next week. The 30 days for both sets would still not take effect until I sold the second set next week.
Just to note, that is a hypothetical situation I am using to further the response. I have stuck to daytrading and scalping so far.
So once both sets are sold, all I would need to do is wait 31 days to book any loss associated with the stock? Which means all I need to do is be done by the end of November, then any loss associated with any Wash Sales would become realized?
For me its more about understanding why some of these traders have huge tax bills and why the IRS does not just go off of Cost Basis and Net Gains. Because this seems to be the only profession where the IRS taxes money that does not actually exist. However, if it is just these traders not wanting to take 31 days off, then to me it sounds easy to avoid, just completely stop trading in November and wait for the rest of the year and re-start in January.
