Monday, December 21, 2009

Own a stock, purchase more, sell all shares at a loss. Does the wash rule apply?

No. Because there is no way the shares you obtained in the second purchase could be considered replacing the shares you sold, it is NOT a wash sale.Own a stock, purchase more, sell all shares at a loss. Does the wash rule apply?
http://www.investopedia.com/articles/04/鈥?/a>





See section titled'; The Wash Sale';.








http://www.irs.gov/taxtopics/tc429.html





See the paragraph that starts with ';The tax treatment of sales of securities held in connection with a trading business ';';';';.Own a stock, purchase more, sell all shares at a loss. Does the wash rule apply?
the wash rule only counts if u sell the stock at a loss and then buy it back at a gain within a 30 day period. its an IRS rule that isnsures that u dont try to offset an invisible gain with a realized loss.
The wash sale rule does not apply if the only trades in the 30 days prior to the sale of the shares were those trades listed in your question.

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