Im trying to determine if the wash sale reported on my account is legit. i dont think it should be. Here is the situation.
in 2021 the company i work for IPO'd. they offered a chance for employees to get in on the IPO. i did and bought some shares at 18$ a share. in 2024 we were acquired by another company. at a price per share of around 11$, so I have a loss on that initial investment. I was also participating in the company ESPP. this ESPP period ended in May of 24. everything with the acquisition finished up in June of 24. So here is what happened. My ESSP purchase triggered in May, and then i sold all my stock, including the ESPP purchase at the end of may a few weeks before it was all going to be cashed out anyway due to the acquisition. Well this triggered a wash sale on my loss from my IPO purchase, because my ESPP purchase happened within the wash sale window, even though i sold everything on the same day. Is this considered a legitimate wash sale or can i negate it and take my ~2000 loss? Seems like im getting screwed pretty bad if it is, this is not the intent of the rule. the coincidence of the timing is what messes it up.
Summery :
IPO purchase in 2021 ~$5000, sold for ~$3000 in May 2024 for loss of ~$2000
automatic ESPP purchase happened May of 24,
Sold all my company stock a week after ESPP purchase on the same day a few weeks before the company acquisition would have cashed out all the stock anyway.
This triggered a wash sale on my IPO purchase.
Does not seem like this should have been a wash sale. technically i guess it is, but i sold both the purchases on the same day/time, so there was no time to actually get any gains from a wash sale. and it was also only happened due to the circumstances of company acquisition.
