Thank you for the video. It's very helpful. However I'm in a situation with several lots bought on the same day. I sold the first lot accidentally and incurred a disallowed loss and an increased basis cost to my second lot of the same day. I'm planning to take a loss to offset some of my realized gain in the same account. So my question is: would I be able to claim a loss for tax purposes if I sell all of the positions acquired on the same day, in the same month? I do not plan to buy the same ETF again within the 60 day window. Thank you in advance for your help.
If you don't wait until at least thirty days from purchase, any losses from the sale of the lots would be disallowed as wash sales, just as with the lot you sold accidentally.
So I don't need an 8949 if my net gain already reflects the wash sale addition? But the free fillable form won't allow me to write directly in line 1b. Is this something I have to do on paper forms then? I don't want to do individual transactions on 8949!
You don't need to list every transaction on 8949. If all the information has been reported to the IRS, you can give the totals from the brokerage statement. You just have to separate short-term from long-term transactions. My (professional) software makes me enter the figures on 8949, and the totals transfer to Schedule D.
Thanks. My question is if I bought 100 shares at $100 and another 100 shares at $90 within 30 days, and then sold them at $95 together to break even for 0 gain or loss. Then is it qualified as wash sale for the first 100 shares which actually is a loss?
The loss on the first lot of shares you purchased would be a "wash sale." For tax purposes, the $500 loss on the sale of the first lot of securities would be disregarded and you would have a $500 recognized short-term gain.
In your example at the 3 minutes, 25-second mark, she didn't repurchase ABC shares and had a wash sale of $2,500, are you saying the loss is not deductable since she bought and sold within a 30-day window? I'm confused there.
The original purchase and sale of the stock produced was a wash sale. If she repurchases and resells again within the 30-day window, she has another wash sale. But if she doesn't repurchase, she still has the original wash sale. On the subsequent repurchase and resale, the basis of the stock she repurchased included the disallowed wash sale.
@@TheTaxGeekit sounds like you're saying that if she didn't ever repurchase after the first sale, those supposedly disallowed losses are gone forever. I don't think this is correct since the first purchase does not count as replacement shares, therefore those losses should be allowed if she never repurchased after the first sale. Please correct me if I'm wrong
Thank you for the video. It's very helpful. However I'm in a situation with several lots bought on the same day. I sold the first lot accidentally and incurred a disallowed loss and an increased basis cost to my second lot of the same day. I'm planning to take a loss to offset some of my realized gain in the same account. So my question is: would I be able to claim a loss for tax purposes if I sell all of the positions acquired on the same day, in the same month? I do not plan to buy the same ETF again within the 60 day window. Thank you in advance for your help.
If you don't wait until at least thirty days from purchase, any losses from the sale of the lots would be disallowed as wash sales, just as with the lot you sold accidentally.
So I don't need an 8949 if my net gain already reflects the wash sale addition? But the free fillable form won't allow me to write directly in line 1b. Is this something I have to do on paper forms then? I don't want to do individual transactions on 8949!
You don't need to list every transaction on 8949. If all the information has been reported to the IRS, you can give the totals from the brokerage statement. You just have to separate short-term from long-term transactions. My (professional) software makes me enter the figures on 8949, and the totals transfer to Schedule D.
Appreciate the content!
Thanks. My question is if I bought 100 shares at $100 and another 100 shares at $90 within 30 days, and then sold them at $95 together to break even for 0 gain or loss. Then is it qualified as wash sale for the first 100 shares which actually is a loss?
The loss on the first lot of shares you purchased would be a "wash sale." For tax purposes, the $500 loss on the sale of the first lot of securities would be disregarded and you would have a $500 recognized short-term gain.
In your example at the 3 minutes, 25-second mark, she didn't repurchase ABC shares and had a wash sale of $2,500, are you saying the loss is not deductable since she bought and sold within a 30-day window? I'm confused there.
The original purchase and sale of the stock produced was a wash sale. If she repurchases and resells again within the 30-day window, she has another wash sale. But if she doesn't repurchase, she still has the original wash sale. On the subsequent repurchase and resale, the basis of the stock she repurchased included the disallowed wash sale.
@@TheTaxGeekit sounds like you're saying that if she didn't ever repurchase after the first sale, those supposedly disallowed losses are gone forever. I don't think this is correct since the first purchase does not count as replacement shares, therefore those losses should be allowed if she never repurchased after the first sale. Please correct me if I'm wrong
thank you
You're welcome
Just another thing the IRS added to overcomplicate things.