Wash sale after selling stock for gain

[samkit]

I am a a little confused with the wash rule. It states:

"It defines a wash sale as one that occurs when an individual sells or trades a security at a loss and, within 30 days before or after this sale, buys a “substantially identical” stock or security, or acquires a contract or option to do so. A wash sale also results if an individual sells a security and the individual's spouse or a company controlled by the individual buys a substantially equivalent security."

Consider case:

• I bought 1 share of A for $100 on Jan 1st

• I sold 1 share of stock A for $140 on Jan 2nd

• I re-purchase 1 share of A for $130 on Jan 10th

• I sold 1 share of A for $80 on Jan 11th

So I ended up with Net Loss of = 10$. Is it considered a wash sale ? Can I use it as capital loss to adjust my overall capital gain in that tax year ? Thanks in advance for your answers.

[tagteam]

The confusion, I believe, originates in the realm of open positions and closed positions.

For example, if you had purchased another share of Stock A on January 12th and continued to hold it, then you would not be able to recognize the loss on the previous transaction. In your hypothetical, it appears as if the positions have all been closed out so the loss and gain can be netted.

[samkit]

Thanks for your reply. You are right. I was very confused about open and closed positions. You answer really helped. I came across an article that describes wash sale nicely : https://www.fool.com/taxes/wash-sales-and-worthless-stock.aspx ( Just in case someone else comes looking in here )