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wilkieca
Returning Member

Calculate wash sale adjustments

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:

  1. divide that loss equally amongst the first purchase in the window (less than 100 shares)
  2. or, divide that loss equally amongst the first 100 shares purchased in the window
  3. or, divide that loss equally amongst the total shares purchased in the window?

Thanks in advance for answering my question...

 

Regards

Calum

2 Replies
Mike9241
Level 15

Calculate wash sale adjustments

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

 

 

 

wilkieca
Returning Member

Calculate wash sale adjustments

Thank you very much.  I appreciate the support.

 

Regards

Calum

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