RaifH
Expert Alumni

Investors & landlords

Everything you said is correct. $200 of the loss occurred when you did not own the stock, so you aren't being punished by the wash sale. 

 

You spent $2,000

You received $1,000 on the sale so now you're in the hole $1,000

You repurchase for $800 so now you're down $1,800

You sell for $2,500 so you are now up $700, which is the same as the gain recognized on your taxes.