Question about wash sale rules and replacement shares

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cookymonster
Posts: 180
Joined: Wed Nov 05, 2014 12:22 pm

Question about wash sale rules and replacement shares

Post by cookymonster » Wed Oct 10, 2018 5:03 pm

Suppose I am selling a stock that has the following lots:

Lot A (10 shares) - purchased 1 week ago

Lot B (10 shares) - purchased 6 weeks ago

I see that Lot A has dropped below cost basis and decide to sell it for a loss.

The following day I notice Lot B has dropped below cost basis as well. Time to sell, right?

My question is, would Lot A still constitute "replacement shares." They have been sold, but the trade is not yet settled.

My assumption is that the sale of Lot A has to settle before they are no longer in your possession, and thus it would be a wash sale violation. Yes or no?

livesoft
Posts: 62720
Joined: Thu Mar 01, 2007 8:00 pm

Re: Question about wash sale rules and replacement shares

Post by livesoft » Wed Oct 10, 2018 5:25 pm

No wash sales here.
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