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Exactly! I realized that during 80-90% time market is truly unpredictable and random. Most (amateur) traders cannot make any statistically significant wins. It’s a small win at best and often big losses in the worst case. Only 10-20% time market provides free money opportunities, on average...

Yes, that’s the key as long as the final total P/L numbers are correct. That’s all that matters. I think 1099 uses some kind of software to calculate wash sales so it can be quite different from the real trades. Go back to my post #70 on page 7 to get a feel on how complicated wash sales can...

Guys, don’t fret about wash sales or disallowed losses. Wash sales are just a label put on those trades defined as wash sales by IRS. They don’t affect your taxes in any way. Disallowed losses do affect your taxes if they are across the end of the tax year, i.e., Dec. - Jan. However, any...

Sorry, cannot download the pdf file.

I think the complexity lies in the fact that if you keep trading the same stock the wash sale thing goes into a perpetual cycle. For example, if you traded 200 shares of stock syz (trade #1) and took a loss, say from $10/share to $8/share to a total loss of $400. In the next 30 days you traded...

That’s right! I have wash sales in my transactions throughout the year. They label a “w” sign on the trades as wash sales. However, the disallowed losses were mostly adjusted to the later trades unless you have wash sales across the end of the year. Then, some disallowed losses would be in the...

Did you ask your broker who did your 1099-B about your wash sales?

I think I figured out my wash sale issue on my 1099-B. In Dec. 2021 I traded 870 shares of TSLA and there were some losses. In Jan. 2022 I traded 2500 shares of TSLA. Therefore, many of my Dec. 2021 TSLA losses are considered as wash sales so they are disallowed in 2021 and are adjusted to the...

Found this link talking about wash sales on different number of shares. https://www.firstrade.com/content/en-us/accounts/taxcenter/?h=washsales

I know the complications. The good thing is I only have one brokerage account where I trade equities only.

Well, as long as you only have small losses per trade it’s ok. Those disallowed losses will be absorbed (cost basis adjusted up) by later winning trades. On the other hand, if you have big losses on large shares you will have to trade large shares in the future to get the disallowed losses...

I looked at my 2021 trading transactions today. It seems to confirm what I said above. If you traded 1000 shares of xyz and had a loss. Then, you traded xyz again with 100 shares in the next 30 days. The first 1000 shares xyz trade is considered as a wash sale as a whole. The next 100 shares...

In your trades in 2021, were they of the same quantity or shares? If your first losing trade was 100 shares but your subsequent trade was only 50 shares, then you would still have 50 shares of disallowed loss in your first trade, which will only be realized until you trade 50 shares of the same...

That I believe is true.

In my case, I did trade the same stocks in Jan. 2022 as those in Dec. 2021 to trigger the wash sale rule. I will check my trading records during Dec. 2021 - Jan. 2022 to confirm.

I think the wash sale rule is pretty clear. How we interpret and deal with it is the issue.

Look at my post #42. Does it make sense to get rid of wash sales?

Let’s say you bought 100 shares of xyz at $100 price and sold them at $50. You lost $5000 in this trade. Then, within 30 days you bought 50 shares of xyz again so you triggered the wash sale rule. The $5000 loss from your first trade is disallowed. But when you sell the 50 shares of xyz in the...

This doesn’t make sense to me.

Do you know why?