So far every example I've seen is of buying 1000 shares of XYZ after selling _the_same_number_ of shares of XYZ at a loss
Scenario:
- Sell 1000 shares of XYZ at a long-term loss of a share.
- Dividend reinvestment program buys 2.61 shares, creating a wash sale.
Are 2.61 shares considered a wash sale, or 1000 shares?
Do I lose the tax benefit of the full $1000 loss, or do I just lose the benefit of $2.61 of the loss, and can still use the other $997.39 of the loss to offset long-term capital gains for trades in other securities?
(It really seems, in justice, that DRIPs ought not to trigger the wash-sale rules, but I understand we have to deal with what is, not with what should be.)