When you have a wash sale, your loss is suspended, but immediately the loss is added to the basis in the replacement stock.
You purchase 100 shares of stock XYZ on December 15, 2021 for $10/share ($1,000). You sell the 100 shares of stock XYZ the same day, December 15, 2021 for $9/share ($900), taking a loss of $100. This loss is suspended and the $100 is added to the basis of the new stock.
On December 16, 2021, you again purchase 100 shares of stock XYZ for $7/share ($700), but the basis is now $800, and sell all 100 shares the same day, December 16, 2021, for $1/share ($100), taking a loss of $700.
1) When I sell the 100 shares of stock XYZ on December 16, 2021, is my realized loss $700 ($100 lost on December 15, 2021 + $600 lost on the December 16, 2021 purchase and sale)? Yes
2) If I wait 40 days from December 16, 2021 to buy the stock again and avoid the wash sale rule, can I write off my losses from the December 2021 trade on my 2021 tax return? Yes
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