I had the following transactions:
5/15/07 Buy 500 11/18/08 Buy 500 12/8/08 Sell 250 Loss 12/9/08 Buy 250 12/10/08 Sell 250 Loss 12/11/08 Buy 250 12/16/08 Sell 250 Gain 12/31/08 Sell 250 Gain 1/12/09 Buy 200 1/14/09 Buy 150 1/15/09 Buy 100Do I have any wash sales? The way I see it, I created wash sales with my purchases on 12/9 and 12/11, but terminated them with my sales for profit on 12/16/08 and 12/31. But what do I know.
Yes
Correct
No, as far as I know there is no concept of "terminating" a wash sale in this manner. Because of the 12/9 and 12/11 washes, right after 12/11 your basis in the shares is determined by the 2007 and 11/18/08 purchases. These form the bases for the 12/16 and 12/31 sales. (If using FIFO, it's the 2007 basis for both.)
Steve
2 wash sales. However, you might not have terminated them by sale. They are terminated only if you used LIFO or specifically indicated which lots you were selling at a gain (a written instruction to your broker is needed to prove that). If you didn't do that, they are still there as an increase to basis of shares you still have.
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Yes, you had two wash sales you identified, but they were negated by selling the two replacement shares \. In wash sale land everything is FIFO (except specific identification of which replacement shares are sold) and the replacement shares take on the buy-date of the wash sale shares, making them the FIFO shares, usually.
ed
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Thisis how I see this problem:
5/15/07 Buy 500 11/18 shares take on the loss and date of the 5/15/07 sharesloss and date of the remaiining 5/15/07 shares
inherited, was it still a gain?
inherited, was it still a gain?
Per the above you might not have any wash sales left, or you might, depending on whether your two sells are a gain after absorbing the losses of the WSs
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Steve Pop said: No, as far as I know there is no concept of "terminating" a wash sale in this manner. Because of the 12/9 and 12/11 washes, right after 12/11 your basis in the shares is determined by the 2007 and 11/18/08 purchases. These form the bases for the 12/16 and 12/31 sales. (If using FIFO, it's the 2007 basis for both.)
Oddly the 2007 purchase are the shares sold to create the wash sales. Their replacement shares of 11/18/08 took on the 2007 date, making them the FIFO shares which are sold to negate the Wash Sales. In other words, all the Replacment Shares carrying Wash Sale losses are sold. Everything else is a purchase and no bearing on this.
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