Wash Sale

[fredgbarb]

If you have 2 separate brokerage accounts let's call them acct #1 and acct #2.  You purchase the same stock (MSFT) and place in each account, 100 shares each.  Ten days later you sell all shares in acct #1 for a profit for all 100 shares.  Then 15 days later you sell the other 100 shares in acct #2 for a loss.  My question is:  if you repurchase the same stock (MSFT) in acct #1 within 30 days of the original sale will this result in a "wash sale" to the new purchase in acct #1?  Or will the wash sale only apply if I repurchase within 30 days in acct #2.

Thanks for a reply.

[Mike9241 · Accepted solution]

Ten days later you sell all shares in acct #1 for a profit for all 100 shares.  Then 15 days later you sell the other 100 shares in acct #2 for a loss.  My question is:  if you repurchase the same stock (MSFT) in acct #1 within 30 days of the original sale will this result in a "wash sale" to the new purchase in acct #1?  Or will the wash sale only apply if I repurchase within 30 days in acct #2.

the 1st sale at a profit has no effect on wash sale determination.

purchase of replacement shares of a substantially identical security within 30 days of the loss sale in any a/c including a tax-deferred a/c such as an IRA will result in a wash sale. since it seems you had no replacement shares purchased before the loss sale then only the 30 days after would matter (the sale in a/c 2).

note with 2 different brokers you would have to manually adjust for the wash sale since neither would know what you did.   

[fanfare]

If you could get around wash sale by opening two accounts, that would defeat the whole purpose, now wouldn't it.