Does the Wash Rule apply if my wife buys the same stock in her personal brokerage account?

[Hubby]

I held stock for less than 30 days in my personal brokerage account for which I sold and incurred a loss.  I sold my entire position in this stock, all of which was held less than 30 days.  If my wife buys the same stock within 30 days in her own brokerage account will the wash rule apply?  We file a joint tax return.

[LudwigVan_fan · Accepted solution]

According to Publication 550, page 56, yes.

"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:
1. Buy substantially identical stock or securities,
2. Acquire substantially identical stock or securities in a fully taxable trade,
3. Acquire a contract or option to buy substantially identical stock or securities, or
4. 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."

Link to Pub 550...look under Wash Sales

https://www.irs.gov/pub/irs-pdf/p550.pdf

[Hubby]

Thank you LudwigVan_fan.  I tried to find the answer in pub 550 first but obviously I did not look well enough.  Thanks again!

[sameea2001]

How would they know? Another word, if the fidelity brokerage doesn't show this automatically and turbotax doesn't automatically downloads and calculates, how do you update the cost basis?