Hi,
I have a question related to wash sales, and how I may rectify my situation to offset the wash sales, and make them count as losses.
As per my realized gain/loss document from my broker, in 2021, I have made $300,000 in short term capital gains. However, I have also caused wash sales that amount to $275,000. These wash sales happened from January to August this year. The wash sales and the units of stocks associated are shown below:
| Ticker | Units |
| AGCB | 10000 |
| AI | 1000 |
| API | 5000 |
| CPNG | 5000 |
| FROG | 3000 |
| OPEN | 2000 |
| PLTR | 2000 |
| VVOS | 5000 |
As it stands, I have exited all positions on the following stocks:
Per my understanding, the losses on wash sales are deferred, they do not completely disappear. Instead, they are added to the cost basis of the replacement share purchase.
A few questions:
- Tomorrow, If I were to repurchase the stocks that were involved in wash sale, hold them for 31 days, and sell them, would be able to recover from all the wash sale?
- How many units of stocks do I need to purchase for each ticker? Does it need to be the same as the number of stocks that were involved in the wash sale?
- For the positions that I have closed, the last sale is still wash sale for some of the stocks. Are these special cases that need to be handled in a certain way?
I have learnt a lot by being a reckless trade. I hope someone can help me get some clarity around the situation
Thank you so much in advance.
