Adding to a position and the wash sale:

[j g]

I'm going to re-ask this one, because I asked it similarly, but not completely clearly, elsewhere:

Say I initiate a buy of  a stock symbol,10 shares at 100, price drops to 10, I add to the position and symbol at my brokerage by buying 100 shares at this price of 10.

Price then goes to 50, and I sell all 110 shares.

Obviously, I made money on exiting this way. There's no worry here about a wash sale, right?

The IRS doesn't want me to report anything to do with that "initiating 10 shares bought at a hundred, that

arguably were sold at 50," right? The circumstances are simply not a bother with any wash sale, right? You please  tell me.

I DON'T HAVE TO WORRY A DANG ABOUT A WASH SALE ON THIS EXAMPLE (though I understand all entry and exit prices are logged in accounting, 1099's etc.), RIGHT?

[Critter-3]

Since you sold all your shares at a gain there is no LOSS to be washed. 

buy 10sh x $100 = $1000 basis

buy 100sh x $10 = $1000 basis

sell 110 sh for $50 each = $5500 - basis of 2000 =  gain of 3500  & no wash

[Mike9241]

there are default methods in place for determining which shares are sold.  you can always inform your broker to use a different acceptable method.  contact your broker as to this

the default is generally FIFO so the first shares bought are the first shares sold

buy 10 at 100 

then

buy 100 at 10

sell 110 shares at 50 as of now no wash sale - you have a loss of $500 on the first lot and a gain on the second lot of $4,000. if you make no purchases of a substantially identical security within the 31 days of sale you'll have a net taxable profit of $3,500.  after the 31 days, you can purchase the same security without the worry of a wash sale. 

however if within 31 days of the sale you were to buy more shares (1 to 10 shares) of the substantially identical security you would have a wash sale on the 10 shares bought at 100 and sold for 50

[fanfare]

@j g 

IRS requires details of every SELL transaction  to be listed on a Form 8949,
or on your other forms (e.g. consolidated 1099-B) which have the same information and in the same manner as Form 8949.

Particularly, that includes Wash Sales, since those are adjusted transactions.

The only exception is:

category Box A or Box D sales without adjustments on a 1099-B with basis reported to IRS do not require Form 8949.

If you choose to use the exception, report the totals for those SELL transactions on Schedule D Line 1a or Line 8a.

[j g]

Mike9241 and Critter-3, you're the 2 guys I need to revisit, get this straighter. 

You're both opposite each other on the answer (1 says has a wash, other no), but the answer can only be one or the other.

I'M ASKING A CREDENTIALED TURBO TAX ADVISOR TO WEIGH IN AND RESOLVE IT.

Oh, and maybe reword this paragraph in my very 1st post:

"

The IRS doesn't want me to report anything to do with that "initiating 10 shares bought at a hundred, that

arguably were sold at 50," right? The circumstances are simply not a bother with any wash sale, right? You please  tell me."

To this:

"I DON'T HAVE TO WORRY A DANG ABOUT A WASH SALE ON THIS EXAMPLE (though I understand all entry and exit prices are logged in accounting, 1099's etc.), RIGHT?

"

For clarity, I went back to the original post, struck out the original paragraph and put in the "...worry a dang..." paragraph.

[fanfare]

@j g 

The "bother" is the hassle on your part to comply with reporting requirements.

See my answer above.

Review your  consolidated 1099-B after it arrives and look for "W" - wash sale loss disallowed.

If any amount disallowed is less than one dollar, ignore it, TurboTax can't handle it !

[JohnB5677]

You are correct. "YOU DON'T HAVE TO WORRY A DANG ABOUT A WASH SALE ON THIS EXAMPLE."

The key is that you did not sell the original 10 shares until you also sold the additional 10 shares.  Since you sold all of it together, there was no basis adjustment required.

If you had only sold the original 10 shares (within 31 days of the alternate purchase) it would have been a wash sale.