On 12/20/16 I sold short say 400 sh. Of XYZ and covered that day, for a $200 loss.
On 12/29, I again sold short 400sh. Of XYZ. So, at the moment, the wash sale rule is in effect and I cannot take the $200 loss in TY 2016.
Suppose I buy those shares back on 12/30. I don?t believe that gain or loss can be taken in 2016 for that short sale. So, that gain/loss goes in 2017. But what about the wash sale $200 loss. Does that also go in
2017 or can it be claimed in 2016Mel
If you do not short XYZ (or take an equivalent position) from 12/31/16 through 1/29/17, and ignoring settlement date problems, both short sales close in 2016, and you claim them in 2016.
If you short 400 sh XYZ in that interval, I would say that both 2016 losses are claimed in 2017.
-- Arthur L Rubin, AFSP, CRTP, Brea, CA
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