Wash sale loss disallowed.... skip December?

Thanks... that's what a smart fidelity guy said, eg don't trade anything in January that I'd sold for a loss in December.

So basically it sounds like I can still day and swing trade whatever I want til December 31, but don't trade those tickers from January 1-31.
 
KCalhoun said:
it sounds like I can still day and swing trade whatever I want til December 31, but don't trade those tickers from January 1-31.
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If the IRS decides to question, waiting until January opens up questions for 2 years of documentation. Better is December imo... several holiday days-off too. Start the new year fresh!

Something to consider...
 
KCalhoun said:
I've run into this before, any tips on managing it?

Likely if I don't trade same stocks in December I traded in November that would help. Good article https://greentradertax.com/how-to-avoid-taxes-on-wash-sale-losses/

How to day trade in December without having wash sale loss disallowed problems?

(I'm not tts/mtm)
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I looked over my 1099 again and I specifically sold 2 stocks off to eliminate the wash sale disallowed losses, one in particular I did not trade 30 days prior and once I sold it off I didn't trade it for over 2 months. And guess what, I still had disallowed losses on my 1099 on that particular stock. I have no clue how this is possible. I have read many articles and they keep saying that wash sales are not an issue if you close them out and don't trade them for 30 days. I find this absolutely wrong because I have a situation that still shows disallowed losses..


So how does one eliminate wash sale loss disallowed problems????
 
S2007S said:
I looked over my 1099 again and I specifically sold 2 stocks off to eliminate the wash sale disallowed losses, one in particular I did not trade 30 days prior and once I sold it off I didn't trade it for over 2 months. And guess what, I still had disallowed losses on my 1099 on that particular stock. I have no clue how this is possible. I have read many articles and they keep saying that wash sales are not an issue if you close them out and don't trade them for 30 days. I find this absolutely wrong because I have a situation that still shows disallowed losses..


So how does one eliminate wash sale loss disallowed problems????
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Your broker might have decided you traded "substantially identical" shares.
https://www.investopedia.com/terms/...tates,before repurchasing the same investment.
Importantly, investors must note that, even if the securities they repurchase are not identical to the ones which they sold, they might be deemed to be “substantially identical” if the two securities are sufficiently similar.
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And the disallowed loss gets added to the cost basis of the shares, so you would realize the loss the next time you sell them.
http://personal.fidelity.com/webxpress/help/topics/learn_account_cost_basis.shtml
The amount of the disallowed loss is added to the cost basis of the new shares.
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ph1l said:
Your broker might have decided you traded "substantially identical" shares.
https://www.investopedia.com/terms/w/washsalerule.asp#:~:text=The Wash-Sale Rule states,before repurchasing the same investment.


And the disallowed loss gets added to the cost basis of the shares, so you would realize the loss the next time you sell them.
http://personal.fidelity.com/webxpress/help/topics/learn_account_cost_basis.shtml
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If the disallowed losses gets added to the cost basis of the shares then why is my 1099 still showing disallowed losses in the separate column of my 1099???
I just don't understand how there can be wash sales disallowed when the stock was sold off before January and not traded 30 days before or after. It makes absolutely no sense. Anyone saying that there is no need to worry about wash sales once you sell the stock completely off by December and not to trade it 30 days after you sell it is false information.


As for trading similar stocks or etfs, the broker does NOT make that decision whoch are similar and which are not similar equities or etfs, they go by the CUSIP #
 
S2007S said:
If the disallowed losses gets added to the cost basis of the shares then why is my 1099 still showing disallowed losses in the separate column of my 1099???
I just don't understand how there can be wash sales disallowed when the stock was sold off before January and not traded 30 days before or after. It makes absolutely no sense. Anyone saying that there is no need to worry about wash sales once you sell the stock completely off by December and not to trade it 30 days after you sell it is false information.


As for trading similar stocks or etfs, the broker does NOT make that decision whoch are similar and which are not similar equities or etfs, they go by the CUSIP #
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The losses would be allowed after you sell the shares later (e.g., now). If you did that, I'd guess your broker would incorporate the increased basis into next year's 1099.

If you didn't buy shares for the same symbol 30 days before or after the sale, I also don't know why the sale would be considered a wash sale. Maybe your broker could provide an explanation?
 
ph1l said:
The losses would be allowed after you sell the shares later (e.g., now). If you did that, I'd guess your broker would incorporate the increased basis into next year's 1099.

If you didn't buy shares for the same symbol 30 days before or after the sale, I also don't know why the sale would be considered a wash sale. Maybe your broker could provide an explanation?
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This just gets more complex, you mentioned if I sell the shares "NOW" in 2022 vs 2021? From every bit of article I have read the shares HAVE to be sold before the following year, so they have to be sold by December 2021 and not bought back for 30 days after which to be completely safe from the wash sale, let's just say February 1st 2022.

I called the broker, they escalated it to the tax department but a few hours later they responded that the statement was indeed correct, they didn't go into details why I still have disallowed losses from that 1 specific trade.
 
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