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Wash sale: selling portion of shares just purchased

Posted: Thu Mar 12, 2020 4:47 pm
by Gufomel
Does this create a wash sale?

1) Buy 100 shares of ABC fund
2) Within 30 days, sell 10 shares of ABC fund
3) Use the proceeds from those shares to buy XYZ fund (not substantially identical to ABC)

No other shares of ABC fund were purchased 30 days before or after the sale.

I’m hung up on whether the other 90 ABC shares purchased in step 1 create a wash sale.

Re: Wash sale: selling portion of shares just purchased

Posted: Thu Mar 12, 2020 5:12 pm
by PeterParker
I only just started looking into this. But I think this is the correct answer:

If you sell THE VERY SAME shares you just bought -- like literally the same dates (you can choose this with your broker - DON'T pick cost averaging or whatever, sell a specific lot) -- it's not a wash sale.


The math works thusly --- if the ABC lot -- if you sold 10 shares that were NOT part of the 100 bought within 30 days ... THEN it would be wash sale. All 10.


If you sold 100 shares of ABC and had only bought 25 within 30 days .... if you sold those 25, it's all good.

If you DIDN'T sell those 25, then 25 of your 100 "loss sold shares" would be washed out -- netting 75 available for TLH.

Re: Wash sale: selling portion of shares just purchased

Posted: Thu Mar 12, 2020 5:22 pm
by iceport
Gufomel wrote: Thu Mar 12, 2020 4:47 pm Does this create a wash sale?

1) Buy 100 shares of ABC fund
2) Within 30 days, sell 10 shares of ABC fund
3) Use the proceeds from those shares to buy XYZ fund (not substantially identical to ABC)

No other shares of ABC fund were purchased 30 days before or after the sale.

I’m hung up on whether the other 90 ABC shares purchased in step 1 create a wash sale.
See Example 2: https://fairmark.com/investment-taxatio ... ent-stock/