Ok, suppose I bought XYZ on 12/15/13 and sold it that day for a GAIN.
I again buy the same XYZ on 12/31/13 and sell it the same day for a LOSS/
I assume this is a wash sale so my LOSS cannot be used/
Now, suppose I do nothing in January, 2014 regarding XYZ.
It is now February, 2014
Am I correct that this loss is now recaptured?
If so, can I claim it on my 2013 tax return, or do I have to wait until I file my 2014 taxes?
Mel
this is not a wash sale situation. The original purchase was not retained and thus cannot be "replacement" shares.
You don't have a wash sale. The rule applies only when you sell for a loss and own some of what you sold 30 days later.
Phil Marti VITA/TCE Volunteer Clarksburg, MD
Oh. I thought it was 30 days BEFORE or AFTER.
Mel
That's true. But if you completely dispose of your position, and don't repurchase any within 30 days, there are no remaining shares to add the disallowed loss to, and the wash sale rule doesn't apply.
Actually, there's something you left out of the original post: Do you have any XYZ shares that you purchased before 12/15/13? If so, you add the disallowed loss to the cost basis of those shares.
Thanks Barry. No shares remaining
Mel
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