Hi @DianeW777,
I was hoping you could review my example here and tell me if the loss in the example can be used against my 2021 gains. I'm a little bit confused by the 60 day window below.
Example
You purchase 100 shares of stock XYZ on December 6, 2021 for $5/share ($500). You sell the 100 shares of stock XYZ the same day, December 6, 2021 for $9/share ($900), realizing a gain of $400.
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. My understanding is that if I repurchase stock XYZ within 30 days of this sale, I will trigger the wash-sale rule and my $100 loss will be suspended and added to the basis of the new stock.
On December 16, 2021, you again purchase 100 shares of stock XYZ this time for $7/share ($700). My understanding is that the basis of this position is $800 (December 16 purchase price + $100 loss from December 15). That same day, December 16, 2021, you sell all 100 shares for $1/share ($100), taking a loss of $700, which is the $100 loss from the December 15 sale + the loss from the December 16 sale.
Assuming I never purchase stock XYZ again, can I use the$700 loss to offset the $400 gain from the December 6 sale? Or do I pay taxes on the $400 gain and have reported on my 1099-B for the 2021 Tax Year $700 as, "wash sale disallowed"?
