Hi,
I had a WASH sale this year but then sold all of the shares I owned in this stock. I understand the cost basis is adjusted for the shares I purchased within 30 days of the WASH sale. Why is the amount then included as adjustments that are then added to my final short-term capital gains thus disallowing the capital loss? I did buy back some shares in this account but 4 months after I had sold all of the shares associated with the WASH sale. I have now sold all of my shares with the last purchases sold in 2025. Will the adjustment (Capital loss) be added to 2025 taxes?
Thanks
closing out all trades does not absolve you of the IRS requirement to report in detail your wash sales.
IRS says:
enter the amount of the nondeductible loss as a positive number in column (g).
By IRS rules, the adjusment goes on the earliest purchase of the security. and proceeding in order untill all the disallowed shares are assigned.
The IRS Pub 550 does not say " earliest purchase in the wash-sale window"
It just says "earliest purchase".