this is wash sale or not?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
ketanco
Posts: 98
Joined: Wed Jul 24, 2013 7:09 pm

this is wash sale or not?

Post by ketanco » Mon Nov 07, 2016 9:53 am

Hello
I recently bought a certain ordinary stock with my regular trading a while ago and less than 30 days before that date, i had also bought or sold the same stock. i still have that same stock in my other trading account , IRA.

now i am going to sell this stock at a PROFIT with my ordinary trading account.

wash sale rule does not apply here right? wash sale rule is only for losses correct? (even if it was less than 30 day when i had bought this stock)

so when i make a profit now, i will just treat this as ordinary capital gain and nothing special here during tax time correct?

User avatar
House Blend
Posts: 4428
Joined: Fri May 04, 2007 1:02 pm

Re: this is wash sale or not?

Post by House Blend » Mon Nov 07, 2016 10:21 am

ketanco wrote:wash sale rule is only for losses correct? (even if it was less than 30 day when i had bought this stock)
Yes. If you sell X today at a gain, it cannot be a wash sale.
I recently bought a certain ordinary stock with my regular trading a while ago and less than 30 days before that date, i had also bought or sold the same stock.
Which is it, bought or sold or both?

Things could get a bit hairy if you had a *prior* wash sale. For example, you sold X at a loss,
then less than 31 days later you bought more X. That makes the prior sale a wash. It alters
(raises) the cost basis of those new shares of X. So if you are selling those new shares now,
it could actually be at a net loss, even though it looks like a gain on paper.

ketanco
Posts: 98
Joined: Wed Jul 24, 2013 7:09 pm

Re: this is wash sale or not?

Post by ketanco » Mon Nov 07, 2016 11:06 am

My previous buy and sell was also at a profit. And this buy and sell will also be at profit. so no it will not be wash sale right?

Also, if i were not to sell anything now, but wait at least 30 days from the date i bought last time, it would again not be wash sale, even if i might sell it at a loss correct ?

Ervin
Posts: 147
Joined: Sun Apr 27, 2014 7:59 am

Re: this is wash sale or not?

Post by Ervin » Mon Nov 07, 2016 11:19 am

The wash-sale rule applies only for losses. You can claim gains every single day, the more the merrier for the IRS.
Last edited by Ervin on Mon Nov 07, 2016 11:19 am, edited 1 time in total.

User avatar
Pajamas
Posts: 5777
Joined: Sun Jun 03, 2012 6:32 pm

Re: this is wash sale or not?

Post by Pajamas » Mon Nov 07, 2016 11:19 am

If all the sales are at a profit, or if the transactions are more than 30 days apart, the wash sale rules don't apply.

The point is to prevent you from harvesting a loss while maintaining a near-continuous position in the stock.

Here is a good explanation with examples:

https://www.schwab.com/public/schwab/nn ... Wash-Sales

Post Reply