In 97&98 I purchased stock (lucent) app$4600 overtime it devalued and I sold (2016) for about $600 loss of $4000? sold other stock for gain of 5500 2016 is this a wash

[jwilson1]

The Lucent comp. was bought over the years by different company's  the original cost went less on reverse splits can I take the original $4600 as a loss for the wash rule for stock I sold in 2016 with zero cost basis

[MichaelL1 · Accepted solution]

The "wash rule" is when you sell a stock at a loss and then buy it back (or identical stock) within 30 days. So this does not apply to this transaction.

However, if you bought Lucent for $4,600 and it split into two different companies and you had a gain on one, and loss on the other one.  The two sales are combined for your net gain or loss on the sale.  

So in the example above, you have a net Long Term gain of $1,500 ($4,000 loss and $5,500 gain).