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Wash Sale Questions

Posted: Mon Sep 28, 2020 10:24 am
by manlymatt83
I have two quick wash sale related questions, hoping BHs can help:
  • If I have 10 lots of 10 shares each, and 60 of them show a loss, and 40 of them show a gain, if I sell a lot that has a gain I won’t be at risk of a wash sale even though some of the shares in other lots show a loss, correct?
  • Does robinhood automatically adjust cost basis for wash sales on tax documents? I left robinhood in October 2019 and sold everything to cash then (to switch to mostly index funds, of course!). I received a tax document for last year that showed a bunch of losses “ineligible due to wash sales”. However, since I sold all of my open positions (and remained out of them!) in October 2019, I should have been able to take the full loss at that time. Would my cost basis on remaining holdings have been adjusted up automatically to compensate, or do I need to add the dollar amount robinhood said they excluded back in? What I am referring to is in the "Wash Sale loss disallowed column": https://ibb.co/JpL4Gxb
Thank you!

Re: Wash Sale Questions

Posted: Mon Sep 28, 2020 10:42 am
by barnaclebob
Wash sales only apply when you buy a security within 30 days before or after selling it for a loss.

Re: Wash Sale Questions

Posted: Mon Sep 28, 2020 10:46 am
by manlymatt83
barnaclebob wrote: Mon Sep 28, 2020 10:42 am Wash sales only apply when you buy a security within 30 days before or after selling it for a loss.
That I understand, but on average I am at a loss. However, I have lots that are at a profit. So if I sell a lot at a profit, I’ll avoid the wash sale, even though overall my average is showing a loss?

Re: Wash Sale Questions

Posted: Mon Sep 28, 2020 11:10 am
by barnaclebob
manlymatt83 wrote: Mon Sep 28, 2020 10:46 am
barnaclebob wrote: Mon Sep 28, 2020 10:42 am Wash sales only apply when you buy a security within 30 days before or after selling it for a loss.
That I understand, but on average I am at a loss. However, I have lots that are at a profit. So if I sell a lot at a profit, I’ll avoid the wash sale, even though overall my average is showing a loss?
This is incorrect, edited below: So long as you don't sell any lots with a loss within 30 days of selling lots with a gain, you wont trigger a wash sale.

Re: Wash Sale Questions

Posted: Mon Sep 28, 2020 11:11 am
by manlymatt83
barnaclebob wrote: Mon Sep 28, 2020 11:10 am
manlymatt83 wrote: Mon Sep 28, 2020 10:46 am
barnaclebob wrote: Mon Sep 28, 2020 10:42 am Wash sales only apply when you buy a security within 30 days before or after selling it for a loss.
That I understand, but on average I am at a loss. However, I have lots that are at a profit. So if I sell a lot at a profit, I’ll avoid the wash sale, even though overall my average is showing a loss?
So long as you don't sell any lots with a loss within 30 days of selling lots with a gain, you wont trigger a wash sale.
Thank you!

Re: Wash Sale Questions

Posted: Mon Sep 28, 2020 11:16 am
by barnaclebob
manlymatt83 wrote: Mon Sep 28, 2020 11:11 am
barnaclebob wrote: Mon Sep 28, 2020 11:10 am
manlymatt83 wrote: Mon Sep 28, 2020 10:46 am
barnaclebob wrote: Mon Sep 28, 2020 10:42 am Wash sales only apply when you buy a security within 30 days before or after selling it for a loss.
That I understand, but on average I am at a loss. However, I have lots that are at a profit. So if I sell a lot at a profit, I’ll avoid the wash sale, even though overall my average is showing a loss?
So long as you don't sell any lots with a loss within 30 days of selling lots with a gain, you wont trigger a wash sale.
Thank you!
Sorry i misspoke. So long as you don't sell any lots at a loss within 30 days of buying any more of the security you wont trigger a wash sale. Commonly people will unknowingly trigger wash sales if they sell at a loss within 30 days of reinvesting dividends.

Re: Wash Sale Questions

Posted: Mon Sep 28, 2020 11:17 am
by manlymatt83
barnaclebob wrote: Mon Sep 28, 2020 11:16 am
manlymatt83 wrote: Mon Sep 28, 2020 11:11 am
barnaclebob wrote: Mon Sep 28, 2020 11:10 am
manlymatt83 wrote: Mon Sep 28, 2020 10:46 am
barnaclebob wrote: Mon Sep 28, 2020 10:42 am Wash sales only apply when you buy a security within 30 days before or after selling it for a loss.
That I understand, but on average I am at a loss. However, I have lots that are at a profit. So if I sell a lot at a profit, I’ll avoid the wash sale, even though overall my average is showing a loss?
So long as you don't sell any lots with a loss within 30 days of selling lots with a gain, you wont trigger a wash sale.
Thank you!
Sorry i misspoke. So long as you don't sell any lots at a loss within 30 days of buying any more of the security you wont trigger a wash sale. Commonly people will unknowingly trigger wash sales if they sell at a loss within 30 days of reinvesting dividends.
Got it, and good point. Thank you.

Re: Wash Sale Questions

Posted: Wed Sep 30, 2020 12:34 pm
by manlymatt83
manlymatt83 wrote: Mon Sep 28, 2020 10:24 am
  • Does robinhood automatically adjust cost basis for wash sales on tax documents? I left robinhood in October 2019 and sold everything to cash then (to switch to mostly index funds, of course!). I received a tax document for last year that showed a bunch of losses “ineligible due to wash sales”. However, since I sold all of my open positions (and remained out of them!) in October 2019, I should have been able to take the full loss at that time. Would my cost basis on remaining holdings have been adjusted up automatically to compensate, or do I need to add the dollar amount robinhood said they excluded back in? What I am referring to is in the "Wash Sale loss disallowed column": https://ibb.co/JpL4Gxb
Does anyone have an answer to this one specifically? Still searching, and Robinhood support hasn't been the most helpful :(