Doc wrote:Buy 200 shares of xyz today at $10.
Sell 100 shares tomorrow at $8.
Do I have a STCL of $200 or 100 shares of xyz at $12?
This could be a nightmare for those of us who are trying to use a short term bond fund instead of a MM fund.
I had a similar type occurrence at Vg several weeks ago except I bought more shares which created the wash sale. There was no question that this was a wash sale transaction. I wound up with three different costs on a single mutual fund transaction.
A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you:
1. Buy substantially identical stock or securities,
2. Acquire substantially identical stock or securities in a fully taxable trade,
3. Acquire a contract or option to buy substantially identical stock or securities, or
4. Acquire substantially identical stock for your individual retirement account (IRA) or Roth IRA.
Two Headed Mule wrote:Assuming the shares sold were from the same lot purchased, and assuming there were no additional purchases within the wash-sale window, the Service has clarified that you have a short term capital loss rather than a wash sale. See Rev Rul 56-602
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