Wash Sale Rule question?
hi, guys just a off topic question, I haven’t traded in a long while, Wash Sale Rule question ? simply, you can trade the same stock many times, if you made money, but if you lose even a dollar, you cant trade that stock for 30 days after ? because that loss was claimed. is that correct? Iam just setting up trade log software ,that what stop me from heavy trading, the dreaded tax time.
September 7th, 2010 at 9:24 pm
The hassle is filling out the schedule D. You have to match the sales to the buys, FIFO. If you lot money and and you buy the stock again within 30 days (before or after), you postpone the loss by adding it to the cost basis of the replacement stock. When you sell the replacement stock, you will finally recognize the loss…unless you stupidly bought it again.