Wash sales on December and tax implications.

[Onyux]

I was wondering if it  was possible to claim losses for this specific scenario:

Buy 100 shares of A on December 10th 2019 

Sell 100 shares of A for a loss on December 17th 2019 <- this would be a wash sale
Buy 100 shares of A on December 18th 2019 <- triggers the wash sale

Sell 100 shares of A for a loss on December 27th 2019
Don't buy anymore shares of A until February of 2020.

Does anyone know if in this particular case one would be able to claim losses if they close entire positions of share A before end of year?

[tagteam · Accepted solution]

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@Onyux wrote:

Does anyone know if in this particular case one would be able to claim losses if they close entire positions of share A before end of year?

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Yes, one would be able to claim the losses (since the positions have been closed out in their entirety) provided substantially identical securities are not acquired within the 30-day period after the last sale on December 27th.

[Onyux]

But if one were to repurchase on January 2020 and within the 31 days from the last sale they wouldn't be able to deduct for 2019 taxes right?

[tagteam]

That is correct. 

[Onyux]

Thanks for the replies 🙂