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emailanshu5-gmai
New Member

Can wash sale loss ever be subtracted from stock gains (now or future)? I have a 10K WashSaleLoss. Any way to take benefit from this or the loss can't be used forever?

My gain was 25K, Wash Sale loss: 10K. Is there any way now or in future years to be able to negate 10K of profit with this 10K wash sale loss? Thank you
2 Replies
tagteam
Level 15

Can wash sale loss ever be subtracted from stock gains (now or future)? I have a 10K WashSaleLoss. Any way to take benefit from this or the loss can't be used forever?


@emailanshu5-gmai wrote:
....Is there any way now or in future years to be able to negate 10K of profit with this 10K wash sale loss?

The loss is added to the cost basis of the new ("substantially identical") security. 

 

When you ultimately dispose of that new security in a fully taxable transaction, then your previously disallowed loss from the wash sale will, effectively, be recognized (i.e., the loss is not "gone forever").

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Mike9241
Level 15

Can wash sale loss ever be subtracted from stock gains (now or future)? I have a 10K WashSaleLoss. Any way to take benefit from this or the loss can't be used forever?

sell the substantially identical security. the one that created the wash sale. your basis is what you paid + the disallowed wash sale loss. so if you sell at a loss (again) you can not have bought "replacement" shares within 30 days before or after the sale otherwise you'll have another wash sale further increasing the basis. if you sell at a gain taking into account the wash sale loss, then you have in fact realized the wash sale loss. 

 

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