Wash Sale

[rmbatp]

Every time I think I understand this rule, I read a post that makes me think I don't. Maybe it's just a confusion in the terminology. So I'll keep it as simple as I can. Say I bought a stock on June 3 and sold it for a $100 loss on June7. Then I buy the stock back again on June14 and sell it for a $100 gain on June 21. I don't trade that stock again for the rest of the year and have no position in it at all. My interpretation is that the the net gain for the year would be $0. Is my interpretation correct?

[Anonymous_]

Yes. The key in your post is no open position at the end of the year.

If you held the stock you bought on June 14th at the end of the year, you could not recognize the $100 loss (that loss would be added to the basis of the June 14th purchase price).

[Mike9241]

since the second sale resulted in a gain (sales price less the sum of what you paid for it + the loss from the wash sale). the wash sale rules no longer apply to that lot. so you could buy the stock again the next day and not have to worry about the previous wash sale.   

[nathan2022]

In my case, I don't hold loss positions during the second half of year but still get disallowed wash sale for those. Is it expected?

[Anonymous_]

If you have any kind of an open position in the same security, the loss will not be recognized.

[nathan2022]

I've cleared all the position in the first half of the year. But the broker still send disallowed loss. 

[rmbatp]

Thanks. I try not to trade anything in January that I've taken a loss on for the last time I traded the stock in December. I figure this should keep me from have disallowed losses.