Wash sales

[sprstpd]

Can you elaborate?

http://www.tradelogsoftware.com/resources/wash-sales/

The most important parts are in "How to Avoid Wash Sales" and "Advice for Active Traders" near the end of the page.

My point was that as long as you get flat for 31 days across the year boundary, then regardless of how your broker reports your activity (including potential intra-year wash sales), you do not have to worry about those wash sales when determining your final tax.

 

[spindr0]

Isn't that exactly what I said?

Nope. You said that:

"Getting flat for 31 days does not technically avoid the wash sale."

By definition of the wash sale violation, it does. If you book a loss and have taken no substantially identical positions within the 60 window, on the 31st day you can take the position again.


"...but if you do it across a year boundary (i.e., December to January), then you can effectively ignore the wash sale for tax calculations."

You can ignore a wash sale loss all year long. At EOY, you cannot ignore it. You either go flat or you carry it forward. You cannot ignore it "across a year boundary (i.e., December to January)."

 

[sprstpd]

Nope. You said that:

"Getting flat for 31 days does not technically avoid the wash sale."

By definition of the wash sale violation, it does. If you book a loss and have taken no substantially identical positions within the 60 window, on the 31st day you can take the position again.


"...but if you do it across a year boundary (i.e., December to January), then you can effectively ignore the wash sale for tax calculations."

You can ignore a wash sale loss all year long. At EOY, you cannot ignore it. You either go flat or you carry it forward. You cannot ignore it "across a year boundary (i.e., December to January)."

My intent was exactly what you stated. I feel like we are speaking different languages. I won't get into why your interpretation of my words is incorrect, but I agree with what you have been saying.

 

[S2007S]

Question about taxes...maybe someone can help me here....

So I have a few trading accounts and one trading account has XYZ stock at a loss, I did NOT sell it and take the loss yet, however I have another account I just opened up and started trading that same XYZ in my new account, now if in my new account I buy and sell the XYZ stock and make a tiny profit, does that mean I cannot take any of the losses in my other account that holds XYZ? Even though the losses outweigh the gains in my new account?

Basically what I'm asking is if I trade two of the same stocks in 2 different accounts can I possibly lose out on being able to claim losses on the first account that I have losses in even if I make little to no profit on XYZ in my new account?


Has anyone ever traded the same stock in two or three different trading accounts?

 

[ET180]

Question about taxes...maybe someone can help me here....

So I have a few trading accounts and one trading account has XYZ stock at a loss, I did NOT sell it and take the loss yet, however I have another account I just opened up and started trading that same XYZ in my new account, now if in my new account I buy and sell the XYZ stock and make a tiny profit, does that mean I cannot take any of the losses in my other account that holds XYZ? Even though the losses outweigh the gains in my new account?

Basically what I'm asking is if I trade two of the same stocks in 2 different accounts can I possibly lose out on being able to claim losses on the first account that I have losses in even if I make little to no profit on XYZ in my new account?


Has anyone ever traded the same stock in two or three different trading accounts?

I have a similar question. I have shares of Disney in one account since the day I was born. If I trade Disney in a second account, based on the new Trump tax reform that requires FIFO, will I have to effectively use the cost basis of the Disney shares acquired first? Otherwise, one could get around the FIFO rule by using multiple accounts.

 

[sprstpd]

Question about taxes...maybe someone can help me here....

So I have a few trading accounts and one trading account has XYZ stock at a loss, I did NOT sell it and take the loss yet, however I have another account I just opened up and started trading that same XYZ in my new account, now if in my new account I buy and sell the XYZ stock and make a tiny profit, does that mean I cannot take any of the losses in my other account that holds XYZ? Even though the losses outweigh the gains in my new account?

Basically what I'm asking is if I trade two of the same stocks in 2 different accounts can I possibly lose out on being able to claim losses on the first account that I have losses in even if I make little to no profit on XYZ in my new account?


Has anyone ever traded the same stock in two or three different trading accounts?

Since they are different accounts, you would report the gain from the one account and you would still be holding the loss in the other account. If you were to sell a stock for a loss and then buy that same stock a few days later in another account, the wash sale rule would apply.

There is one case where this has really bad tax implications: when you sell a stock for a loss in one account and then a few days later buy that same stock in an IRA. See: https://www.investopedia.com/articles/retirement/09/ira-wash-sale-rule.asp

 

[sprstpd]

I have a similar question. I have shares of Disney in one account since the day I was born. If I trade Disney in a second account, based on the new Trump tax reform that requires FIFO, will I have to effectively use the cost basis of the Disney shares acquired first? Otherwise, one could get around the FIFO rule by using multiple accounts.

I would be shocked if FIFO would ever apply across multiple accounts.

The new Trump tax reform ended up dumping the FIFO proposal I think: http://www.wealthmanagement.com/industry/fifo-rule-excluded-final-version-tax-bill