AmyC
Expert Alumni

Investors & landlords

Nope. You purchased 12/5 substantially similar stock. No loss in 2022 for you. You agreed they are substantially similar.  We are back to where we started this conversation when I said they would all end up rolled into one basket. Beware the holding period though because it is absorbed also, bolded below for you.

 

Go back to the wash rules About Publication 550, Investment Income and Expenses:

A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you:

Buy substantially identical stock or securities,

Acquire substantially identical stock or securities in a fully taxable trade,

Acquire a contract or option to buy substantially identical stock or securities, or

Acquire substantially identical stock for your individual retirement arrangement (IRA) or Roth IRA.


If you sell stock and your spouse or a corporation you control buys substantially identical stock, you also have a wash sale.

 

If your loss was disallowed because of the wash sale rules, add the disallowed loss to the cost of the new stock or securities (except in (4) above). The result is your basis in the new stock or securities. This adjustment postpones the loss deduction until the disposition of the new stock or securities. Your holding period for the new stock or securities includes the holding period of the stock or securities sold.

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