Wash Sale rule on brief trades?

I get the basic concept of the wash sale rule but I am getting tripped up by the fact that it includes shares purchased within 30 days before the sale. This seems to imply that the wash sale rule applies to quick trades.





Specifically - If I buy 100 shares on Day #1 and sell all 100 shares on Day #20 for a loss I'm thinking that I should be able to claim that loss without the wash sale rule. But the wording of the rule seems to indicate that I can not claim the loss because the purchase was less than 30 days prior.





In this example - there is one buy and one sell. I did not repurchase the shares again after the sale. I understand how the wash sale would effect re-purchased shares.Wash Sale rule on brief trades?
We are talking about one same stock here.


1 buy and 1 sale for a loss within 30 days is not a Wash Sale. However if you continue with another buy within 30 days of your last sale at a loss, then this becomes a Wash Sale.


You can claim a loss on your above transaction, and as a short term loss. But if you buy the same stock within 30 days of your last loss sale than this is a wash sale. You cannot claim loss on this transaction; some brokerage firm will even freeze your trading account for the next1-2 months.Wash Sale rule on brief trades?
The wash sale rules do not apply if you do NOT continue to own the stock.





The 30 days before rule was added to close a loophole (and the wash sale rules are decades old)--this prevented sellers from buying 100 shares on Day #1, decide to sell and take a loss on Day #500 and then to avoid the wash sale rules, try to sneak in the repurchase by doing it on day #499 just before selling the first lot of stock.