I understand that if there's a disallowed loss due to a wash sale, I made a boo-boo. I made a boo-boo and am trying to plan for it.
I sold some shares in Acme corporation, who I work for. I mis-counted and acquired new shares through RSU and ESPP vesting before the 30 day window had elapsed. That was my goof. The first event was a RSU vest and the 2nd event, a few days later, was an ESPP purchase.
I sold 100 shares with a $5 loss. I realise that I have to add the $500 loss to an equivalent number of shares within the loss period.
The question I have is do I:
- divide that loss equally amongst the first purchase in the window (less than 100 shares)
- or, divide that loss equally amongst the first 100 shares purchased in the window
- or, divide that loss equally amongst the total shares purchased in the window?
Thanks in advance for answering my question...
assumes replacement shares are the same as shares sold at a loss
the wash sale period is 30 days before or after the loss sale
so if you sold 100 shares at a $5 loss and only repurchased 20 shares during the wash sale period only the loss on 20 of the 100 sold would be added to those 20 shares or $100 (20 * $5)
if you bought 200 shares during the wash sale period only the first 100 would have their basis adjusted for the $500 loss.
so your no. 2 would be the correct approach