Solved: Wash Sale
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fredgbarb
Level 1

Wash Sale

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.

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Accepted Solutions
Mike9241
Level 6

Wash Sale

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.   

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2 Replies
Mike9241
Level 6

Wash Sale

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.   

View solution in original post

fanfare
Level 15

Wash Sale

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

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