Question about wash sale rules?...?

Here's a hypothetical.





Say I buy 700 shares of XYZ yesterday. Today I sell the 700 shares at a loss of 5%.


Then, today, I sell short 500 shares then later today, I buy to cover at a loss of 2%.


Then today I buy 740 shares and sell them tomorrow at a 20% loss.





How would the wash sale rule apply to this?Question about wash sale rules?...?
There is no wash sale effect, since all you have is losses. The wash sale rule was put in place to prevent you from selling at a loss, then buying the same stock within 30 days, expecting to make a profit. If you always lose on the stock, there is no profit to offset the losses and so the wash rule does not apply.