Two questions about wash sales:
1. On 10/5/2023, I sold my entire position in a bond index fund (5,009.826 shares at $9.83/each, $49,246.59 in proceeds) resulting in $8.58 in short term capital losses and $5,053.32 in long term capital losses. I own no other "substantially identical" funds to this one. After the fact, I realized that I had automatic dividend reinvestment set up for that account, and had automatically purchased 11.296 shares of that fund at $9.84/each for a total of $111.15 on 9/29/2023. My understanding is this makes the sale of the 11.296 shares a wash sale, and I won't be able to deduct the (miniscule) loss from that, but can still deduct the remaining losses from the sale of the remaining shares. Is that correct?
2. My company gives me restricted stock grants, but unfortunately some shares vest basically every month, leaving me no way to sell any of my existing shares at a loss without triggering a wash sale. (I'm unable to defer release of my grants.) However, I'd like to sell some of this stock in the near future and harvest the loss.
a) Is there any strategy I should have in mind for doing this?
b) Let's say I sell 626 shares of company stock and receive a 61 share grant within 30 days of the sale. My understanding from Pub. 550 is that I can claim a capital loss on 565 of the shares, and the disallowed loss on the 61 shares will be added into the cost basis of those shares. (e.g. if the vesting price of the 61 shares is $1 per share higher than the sale price of the 626 shares, then the cost basis for the 61 shares will increase by $1 per share) Is that correct?
c) If b is correct, will Etrade (account manager) accurately track the revised cost basis, or is that something I'll need to track myself?
Thanks!
