Impact of wash sale

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walkingeejit
Posts: 13
Joined: Wed Apr 19, 2017 8:22 pm

Impact of wash sale

Post by walkingeejit » Tue May 22, 2018 8:56 pm

Hello,

I had two vestings this year of RSUs, one in January and one in May. I sold the RSUs vested in January at a loss just 8 days after some RSUs were vested in May. I had not considered this was a wash sale - rather foolish of me I admit. But it does raise a rather big problem for me in that, my RSU vesting schedule and the trade window in which I am able to sell my vested RSUs is always going to be within 31 days of each other. It seems like I have no choice but to either hold onto these shares until 31 days after I leave the company, or always perform a wash sale.
Timeline of events:

January: 100 units vested, 36 sold for tax. 64 units held.
May 1st: 100 units vested, 36 sold for tax, 64 units held.
May 8th: 64 units from January sold at a loss of about $1,800.

Four questions, which I hope aren't too overbearing:

1. Have understood this correctly:
  • I can't claim a loss of $1,800 and will have to accept the tax hit (presumably already paid) and learn my lesson.
  • I need to report this on a Schedule D form on my 2018 tax return next year.
2. Should I anticipate any further penalties for the wash sale?

3. I rather not keep my vested RSUs, and prefer to sell so I can move the cash to my more diversified taxable investments. My current RSUs have a gain of $902.93. If I sell these now, am I right in thinking a) I will pay short term tax on this, and b) this would not be a wash sale.

4. How on earth could I sell my RSUs when they vest without falling into this trap? (As, it seems there is always a small loss each time the RSUs vest. This current time is the first occasion in 4 periods so far)

Thoughts appreciated, thank you!

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