topic Can I carry over wash sale disallowed amount to the following year? in Investors & landlords

Can I carry over wash sale disallowed amount to the following year?

Horanis — Mon, 02 Nov 2020 21:40:21 GMT

Hello,

I do not do much trading. I bought 150 shares and sold them at loss of around $700. Next day, I bought 200 shares in the same security at $6500 and I am planning to keep them at least until the year of 2021.

Let us assume that I sell those shares in February 2021 at $7500. Can I add $700 wash sale disallowed amount to the basis amount for tax year of 2021?

Thank you.

Re: Can I carry over wash sale disallowed amount to the following year?

Critter-3 — Mon, 02 Nov 2020 23:39:26 GMT

The wash sale loss computation is attached to the basis of the stock and is used whenever you eventually sell the stock.

Re: Can I carry over wash sale disallowed amount to the following year?

Anonymous — Tue, 03 Nov 2020 01:22:14 GMT

if you look at your brokerage statement or maybe even your a/c online you should see the cost of the shares you bought for $6,500 that caused a $700 wash sale as $7,200. brokers automatically adjust the basis for wash sales. be careful because when you sell these there will be a loss if sold for less than $7,200 so if you buy them again within 31 days of the sale there will be another wash sale.