"Wash Sales" - recapture before end of year?

Unknowingly we incurred Wash Sale losses which were "lost" to us as we bought back into them within 30 days or had traded with 30 days prior ( accounts are ordinary, not IRA, etc) - many of these concern stocks which we will probably invest in again ( in some cases we have). The question is.....in order to recapture these " lost losses" where we are not in the stock now but like it and will buy it back again, do we need to buy back in again " before" the year's end in order to add the Wash sale losses back as part of our cost basis - or do the Wash Sale losses carry over into 2008?

Thanks in advance for any help Hauslohn

Reply to
Hauslohn
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You state "where we are not in the stock now". If you no longer hold the stock, the wash sale either doesn't apply, or did apply but you recouped it. If you are now sitting on a loss, don't buy it back until 31 days after the last sale on the stock, that sale should contain the allowed loss. Wash sale losses don't 'carry' year to year, they follow the shares you bought which created the issue in the first place. JOE

Reply to
joetaxpayer

The losses weren't lost, they were deferred until you sell the stock in question and don't buy it back within the 61 day period around the sale date. Since a wash sale requires that you still own the stock, you just adjust the basis for the stock you still hold. The wash sale loss is thus factored into your gain/loss calculation when you actually dispose of the stock.

This makes no sense. If you no longer hold any of the stock, your wash sale loss has already been recognized.

See IRS Publication 550.

Reply to
Phil Marti

Our thanks to the both of you.... we will now " digest" your help and the IRS Publication

- Our best wishes for a happy and successful 2008

Hauslohn

Reply to
Hauslohn

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