So much inaccurate info being dispensed in this thread!!
The facts on wash-sales from the experts....
http://www.tradelogsoftware.com/resources/wash-sales/
This is a really good article. The following is quoted from this article. To verify my understanding of the wash-sale rule, in order to claim the wash-sale losses for 2022, I just need to pause trading for a period of 31 days between Dec 1 2022 and Jan 31 2023, right?
PLEASE READ THIS REAL LIFE ACCOUNT:
In tax year 2000, a trader repeatedly bought and sold anywhere from 400 to 1000 shares of the same stock over a period of several months and never stopped trading this particular stock for more than 30 days. Some trades were profitable, but most were not. His profitable trades amounted to $7,023. On 12/29/2000 he liquidated all of his shares and took a $117,045 loss. Therefore his net loss at year end totaled $110,022. He could have stopped right then and there, but for some reason he did not!
What do you think would happen if he repurchased this same stock on January 2, 2001?
You guessed it, his entire loss of $117,045 was disallowed for 2000 and he ended up having a net gain of $7,023 for tax year 2000!
He had an actual net loss of $110,022 on that one stock for tax year 2000, but because of not paying attention to the IRS wash sale rule, he instead had to pay taxes on a gain of $7,023!!
