Thanks again. I learned a lot. About wash sale, in the following example, what did I lose?
3/1 buy 100 shares of A stock at $20 a share
5/1 sell the above 100 shares at $10 a share, now I have total loss of $1000
5/15 buy 100 share of A stock at $8 a share. In this step triggered wash sale.
6/1 sell the 100 share of A stock at $25. When file tax return, the cost basis is $8 + $10, is it correct? If so, I made $700 as short term gain.
If I don't do anything after 3/1 and hold the 100 shares until 6/1. Sell them all, I make $500 profit. in this example, what is the punishment to the wash sale?
