Is this a wash sale, yes or no?

S

S2007S

Is this a wash sale


Buy 50 shares at 25 for

Cost $1250


Stock drops to 5.00.

Loss now $1000 ...

While still holding those shares I cost average in at 5 dollars buying 1000 additional shares at $5.00 a piece
.
Buy 1000 shares at $5.00 ..Cost average now:

1250 original Cost 50 shares at 25 plus $5000 for new shares 1000 at 5 dollars

$6250/1050 shares

Cost average now $5.95


I sell all 1050 shares at $6.00


Profit $52.50


Is this a wash sale? Yes or no?
 
Drawdown Addict said:
A wash sale is meant to point at the ability to claim tax relief on a loss, but if you didn't sell and bought on the same market, essentially averaging your position,
I don't think that would qualify as a wash sale.

The key here, I think, is that you did not sell before buying again.

https://www.investopedia.com/terms/w/washsale.asp
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That's exactly what I thought. But they are saying other wise.

Going into my history

The Original shares were bought in Jan of 2023. There was not a sell at all on those shares . I bought more shares in jan 2024 to cost average in and sold all shares together, the original bought in jan 2023 and the new shares bought in January 2024 a few days later


My broker is claiming there is a wash sale and I know for a fact there cannot be.
 
not a wash for many reasons.

Having worked at a brokerage, their training is fast and not comprehensive at all. If you were speaking to a general cust service rep, ask to speak to their cost basis or reporting department. I'm sure they'll confirm not a wash.
 
JamesOptions said:
not a wash for many reasons.

Having worked at a brokerage, their training is fast and not comprehensive at all. If you were speaking to a general cust service rep, ask to speak to their cost basis or reporting department. I'm sure they'll confirm not a wash.
More...


This just tells me there could be numerous errors from past 1099s I have received throughout the years.
.you know how many times I have received an updated 1099 after receiving the first one for taxes.
 
S2007S said:
Is this a wash sale


Buy 50 shares at 25 for

Cost $1250


Stock drops to 5.00.

Loss now $1000 ...

While still holding those shares I cost average in at 5 dollars buying 1000 additional shares at $5.00 a piece
.
Buy 1000 shares at $5.00 ..Cost average now:

1250 original Cost 50 shares at 25 plus $5000 for new shares 1000 at 5 dollars

$6250/1050 shares

Cost average now $5.95


I sell all 1050 shares at $6.00


Profit $52.50


Is this a wash sale? Yes or no?
More...
S2007S said:
That's exactly what I thought. But they are saying other wise.

Going into my history

The Original shares were bought in Jan of 2023. There was not a sell at all on those shares . I bought more shares in jan 2024 to cost average in and sold all shares together, the original bought in jan 2023 and the new shares bought in January 2024 a few days later


My broker is claiming there is a wash sale and I know for a fact there cannot be.
More...
The data you provided,
  1. Buy 50 shares at $25, Jan, 2023
  2. Buy 1000 shares at $5, Jan XX, 2024
  3. Sell 1050 shares at $6, Jan XX+Y, 2024
is not a wash sale because
  • 50 shares were bought more than 30 days before the sale
  • 1000 shares were sold at a profit

https://www.investopedia.com/terms/...lls a security,a similar position too quickly.
upload_2024-2-11_20-53-30.png
 
ph1l said:
The data you provided,
  1. Buy 50 shares at $25, Jan, 2023
  2. Buy 1000 shares at $5, Jan XX, 2024
  3. Sell 1050 shares at $6, Jan XX+Y, 2024
is not a wash sale because
  • 50 shares were bought more than 30 days before the sale
  • 1000 shares were sold at a profit

https://www.investopedia.com/terms/w/washsale.asp#:~:text=A wash sale occurs when an investor sells a security,a similar position too quickly.
View attachment 333719
More...


What if the 50 shares were bought less than 30 days before the sale

But still sold for a profit?
 
If you have no enemy, then it is not a wash sale.
If you have enemy, then it might be a wash sale.


I see that the amount is small.
I doubt the regulator is interested in such a case.
 
S2007S said:
Is this a wash sale


Buy 50 shares at 25 for

Cost $1250


Stock drops to 5.00.

Loss now $1000 ...

While still holding those shares I cost average in at 5 dollars buying 1000 additional shares at $5.00 a piece
.
Buy 1000 shares at $5.00 ..Cost average now:

1250 original Cost 50 shares at 25 plus $5000 for new shares 1000 at 5 dollars

$6250/1050 shares

Cost average now $5.95


I sell all 1050 shares at $6.00


Profit $52.50


Is this a wash sale? Yes or no?
More...


You have to consider your FIFO cost, not your weighted cost.

Buy 100 shares at $10
Buy 100 shares at $5
Weighted cost = 200 shares at 7.50

However if you sell 100 shares, you now have 100 shares at a cost of $5.
If you sold 101 shares, you now have 99 shares at a cost of $5.


These are the numbers that the year end spreadsheet from your broker will be using for tax.
 
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