OK, is there anything that causes more confusion (besides some of the depreciation conventions) than the wash sale rule?
Suppose I buy and sell XYZ on 4/1/13 for a $200 loss.
I now buy and sell the same stock on 4/10/13 for a $500 gain.
Now, the $200 loss is disallowed due to the wash sale rule.
But here's my confusion. I know I can recapture that loss.
If I do nothing with the stock for 30 days, is it automatically recaptured?
Or, let's say I again trade the stock on 4/20/13. If it's a gain do I recapture it? What if it's a loss?
Suppose instead I wait until May 2 (31 days after the original loss). Do I recapture it then? Or do I wait until May 11 (31 days after that gain)? Do I recapture it?
In short, how do I regain a wash sale loss incurred on 4/10 due to a loss on 4/1?
Mel