Personal Finance Topics / Tax Strategies
No. of Recommendations: 1
Just double checking.
I know if you buy a stock/ETF within 30 days after selling it then it's a wash sale.
Does that apply for selling a stock/ETF within 30 days after buying it? Even if I have never bought or sold it before?
From the IRS language I think so. But it seems weird that it would.
No. of Recommendations: 3
A wash sale occurs only if there's a loss. If there's a profit, or a breakeven, there's no wash sale.
Given a loss on the sale, that loss isn't recognized as a capital loss for tax purposes if the same security or a substantially similar security is obtained within thirty days prior or subsequent to the date of sale.
What you've done in the more distant past doesn't matter; it's that 60-day interval that counts.
Eric Hines
No. of Recommendations: 1
IOW if I buy a stock that I have never held before, and it goes down, I need to wait >= 31 days to sell it and recognize a capital loss? I think that's what you are saying. For example if I sell it at a loss 15 days after buying then it would be a wash sale?
No. of Recommendations: 6
IOW if I buy a stock that I have never held before, and it goes down, I need to wait >= 31 days to sell it and recognize a capital loss? I think that's what you are saying. For example if I sell it at a loss 15 days after buying then it would be a wash sale?
Yes, if you sell for a loss after 15 days of ownership, it's a wash sale, but that will only matter if you buy again within 30 days after the sale. If you don't the wash sale clears and you take the loss as normal. If you do buy again within 30 days after selling, the sale is a wash sale, but all that means is that the loss is deferred, it's not lost.
Brian
No. of Recommendations: 1
Thank you Eric and Brian so much for the answers!
