Help me with WASH SALE pleaase!

[rbpshop]

Hi So following are my transactions

Apr 19 -  1000 shares bought -> Lot X
Apr 22 - 250 shares bought. -> Lot Y
Apr 24 - 350 shares bought -> Lot Z
May 04 - Sold Lot X for Gain of $30k,  Lot Z for Loss of $10k

Holding on to Lot Y - till today.
Does Lot Z constitute a wash sale?  If so , where does the $10k loss go to? Cost Basis of Lot X (sold) or cost basis of Lot Y(holding still)

[DianeW777]

Yes, the loss on Lot Z is a wash sale because you are still holding stock that was purchased in the 60 day window (within 30 days before or 30 days after the sale of the same stock).

The cost basis of Lot Y, which you still hold is increased by the $10,000 loss on the sale of Lot Z.  If you sell Lot Y without a repurchase within the 60 day window you will no longer have a wash sale at that time.

[rbpshop]

Thanks for the quick reply!!
I have talked to few CPA & TurboTax experts - but everyone keeps giving different answer. (Lot X vs Lot Y)

[DianeW777]

You're welcome.  Here is a link to IRS Publication 550 which will also provide some detail about wash sales and the rules.