OK, let's say in late December, 2021, you buy 1000 sh. of XYZ at 10 and sell it at 9, so you lose $1000. Furthermore, suppose you do this 5 times, so you have $5000 in losses for 2021 all accrued in late December.
Now suppose for some reason you don't want to claim this loss in 2021.
So, if you buy/sell XYZ in early January, 2022, will the wash sale move that loss into 2022?
Mel
The whole purpose of the wash sale rule is to disallow a loss (it doesn't apply to gains) from the sale and acquisition of the same stock within 30 days. So no, you can't move the loss to 2022. In fact the wash sale rule would prevent you from recognizing the loss at all within that time period. You may be able to recognize the loss in 2022 if you wait more than 30 days.
But you're actually talking about something else - shifting income or a loss to another year. People have tried that in many forms - they call them stradles. Some have been successful, but for the most part, as I recall, they are not allowed.
Yes, you can push a loss forward by triggering a wash sale and not selling the replacement shares until the new year. What you can't do is push a gain forward. Once you have a realized gain, it must be recognized (that is, included on the current tax return.)
Ira Smilovitz, EA Leonia, NJ
I defer to Ira. Thanks.
Well, I did try it and I think it worked. I bought XYZ say at 10. But my cost shown on Ameritrade is higher, enough to push the loss taken away last year into this year.
Mel
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