Question on the wash sale rule for stocks. (Scenarios)?

Given a few different scenarios can I claim the loss??





Scenario A)


I understand that if i buy a share of stock for $100 and then sell it for $90 five days later that I can not claim the loss.





Scenario B)


But what about if I buy a share of stock for $100 and 3 months later I sell it for $90. Then I buy back the same stock 5 days later for $91. Can I claim that $10 loss?





Scenario C)


How about if I buy a share of stock for $100 and then 2 months later I sell it for $120. I realize I would owe the capital gain tax here. But what if I buy it back 5 days later at $122 and then sell it 3 months later for $80? Can I claim the $42 tax loss here?


(This one is really tricky to me)








Can someone tell me what my losses that I can claim are for each scenario?





thank you.Question on the wash sale rule for stocks. (Scenarios)?
A. False. You have a short term loss. Unless you buy a substantially identical share of stock within 30 days either way of the sale, other than the original purchase, you are safe.





B. No, the wash sale rule applies here since you bought a substantially identical stock within 30 days. Your loss is limited to $9





C. You'll realize a loss on the second sale since there was more than 30 days between the first sale (with a gain) and the second purchase. The loss will offset the gain on the first block for a net loss of $22. The wash sale rule does not apply.Question on the wash sale rule for stocks. (Scenarios)?
A. You understand wrong - you'd have a short term loss.





B. This is what's called a wash sale - you sold at a loss, then bought the same stock right back. You don't claim the loss on the sale, but that rolls into your basis on the newly acquired stock so that would become $81 - this assumes of course that you bought back the same number of shares that you sold.





C. They are separate transactions and don't affect each other - it's not a wash sale because the first sale was a gain not a loss. Yes, you claim the gain on the first sale, then claim the loss on the second.