most experts say it does. this is from IRS pub 550 the section on wash sales
Example 2. You are an employee of a corporation with an incentive pay plan. Under this
plan, you are given 10 shares of the corporation's stock as a bonus award. You include the
fair market value of the stock in your gross income as additional pay. You later sell these
shares at a loss. If you receive another bonus
award of substantially identical stock within 30
days of the sale, you cannot deduct your loss
on the sale
in your example based on the above lot 2 triggers the wash sale on lot 1 because its acquisition was within 30 days of selling lot 1 at a loss. however, the sale on lot 2 frees up the disallowed loss on lot 1. the lot 1 loss adds to the tax basis of lot 2. the holding period of lot 1 tacks on to 90 shares of lot 2s holding period. thus is long-term. the other 60 shares are short-term. the tax basis of 90 shares of lot 2 is the $25/share + $10/share loss on lot 1. the other 60 have a tax basis of $25. NOTE that if you acquire more shares of the company within 31 days of selling lot 2 you will again trigger a wash sale for some or all of lot 2.
without the wash sale, you would have a long-term loss on lot 1 of $900 and a short-term loss on lot 2 of $750 total $1650. because of the wash sale, the tax base of 90 shares of lot 2 is 90 x (25+10) = 3150 sold for 1800 long-term loss 1350. 60 shares of lot 2 tax basis is 60 x 25 = 1500 sold for 1200 short-term loss 300 total 1650 as one would expect. hope my math is correct.
