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That is absolutely correct. When you have a wash sale, it does not mean that you can never deduct the loss. As you stated, it changes your basis, and the loss gets "rolled" into the next sale. The original post raised a question about trading in December, and whether certain transactions would...

What do you think is the maximum price one should pay for a guy's haircut?

I'm not the OP... so I can't answer that

No joke. Here's what it says in IRS Publication 550: You cannot deduct losses from sales or trades of stock or securities in a wash sale unless the loss was incurred in the ordinary course of your business as a dealer in stock or securities. A wash sale occurs when you sell or trade stock or...

https://taxexperts.naea.org/content/what-is-an-enrolled-agent.html

I don't actually work for the Treasury Department. Some enrolled agents are former IRS agents. I am not. The term enrolled agent dates back over a hundred years, and it refers to the fact that we are authorized to represent a taxpayer in administrative proceedings before the IRS, such as audits...

Yes, you are required to use a capital loss carryforward. To a certain extent. The forms require you to enter the amount, go through some rather detailed calculations, so that you and the IRS can keep track of the loss. So there is a line where you have to enter the full amount of the...

The $3K max is how much you can use to reduce ordinary income, such as wages, IRA distributions, rental income, interest income, etc. There is no limit to how much of the capital loss carryforward can be applied to capital gain. If you work through a Schedule D manually, you can see that the...

This morning on Schwab, we got an order filled, but the positions screen was not updated. It finally updated after four or five minutes. This has been happening for over a month now. Not all the time, of course. The last time I tried to report it, they told me to clear the cache on my PC. Of...

I have not done a return with a MTM election or Form 3115 in a while. I have reached out to some of my colleagues to try to get you an answer. Might take a couple days. It's not just about whether it can be done in TurboTax. It's whether those forms can be filed electronically at all. There are...

I am going to assume that you do not qualify for trader tax status, and that you are not using the mark-to-market election. Even if you think of yourself as a "day trader," or a "professional trader," or an "active trader," and even if you are subject to the pattern day trader rules in the USA...

Occasionally some of the humans that work at a large multinational corporation have something that resembles a moral compass. You got lucky and found one of them. You might have had a case, for the courts or for arbitration, if they had not refunded the fees. Depends on how their T&C is...

@FTDK Okay, so what you are really saying is that you expect a large multinational corporation to have some type of moral compass, or an idea of what is fair, or an idea of what is right and wrong. Q1: What planet are you living on? Q2: What century are you living in?

Returns filed by US mail take a long time to process and are more likely to encounter problems or errors during processing. This was true even before the pandemic. Under the current conditions, IRS mail processing has almost come to a standstill. During several months of lockdown, most IRS...

In your example, the answer is yes, you would be able to take all of the accumulated losses. But it has nothing do with "not trading in December." Wash sales are not based on the months of the calendar. They are based on periods of 30 days. So, for example: I buy the stock on December 2, and...

Is is a single-member LLC? Is is part of your personal tax return, or are you doing a tax return for a partnership? BMK

I don't think they can give you a 1099 without the wash sales. Yes, you may get a letter from the IRS, but if you have properly made the MTM election on your tax return, you should be able to resolve the matter without having to go through a full-blow audit. You should be able to download a...

@cashclay Did you see my private message to you?

The intrinsic value of an option is represented by one number--not two numbers. If the stock price is $48.00 per share, and I have a call option with a strike price of $45.00, then the intrinsic value of the option is $3.00 per share, which is equivalent to $300.00 (because $3.00 x 100 shares =...

According to the Forbes article, he had 24 bull put spreads in IWM https://www.forbes.com/sites/jeffkauflin/2021/02/08/robinhood-hit-with-wrongful-death-suit-from-the-family-of-alex-kearns-alleging-customer-service-failures-and-reckless-practices