Wash sale rule on tax return?

Bought 100sh XYZ at $50/sh on 110106. Sold 100sh XYZ at $40/sh on 111006. Bought 100sh XYZ at $30/sh on 120106. Sold 100sh XYZ at $40/sh on 020107. On my 2006 tax return sch D, I will write the 100sh at cost of $5000 and sold for $4000 with $1000 loss. However, I will write ';wash sale'; under it b/c I purchased the stock less than 31 days later. On my 2007 tax return, do I list on the sch D that my 120106 was for 100sh at a cost of $4000 and sold for $4000 with no net gain? Or did I lose the adjusted cost basis b/c I sold the next tax year?Wash sale rule on tax return?
The disallowed loss added to the cost basis of the new stock no matter what year it was sold. So you get the benefit the next year.Wash sale rule on tax return?
good homework problem lol
You've got it right! Wash sales are not the easiest stock sales to handle. Your first buy /sell (purchased for $5,000 %26amp; sold for $4,000) will be listed as a short term loss on your 2006 Schedule D. Since you purchased substantially the same stock between October 11, 2006 and December 10, 2006, it's a wash sale.





On one line of the Schedule D, you list the details of your $1,000 loss. Enter the loss in column f. On the very next line, write ';wash sale'; in column (a) and enter as a positive number in column (f) the amount of the loss not allowed.





On your 2007 tax return, you'll show your 2nd sale on 2/1/07. The sales price will be $4,000. Your purchase price will be $3,000 plus $1,000 (wash sale loss) = $4,000. And no gain/loss ! Yeah!
Well, it seems that you have this question answered already... However, I would check with a tax professional on whether or not the benefit would be for this year or next year.





I found a way to to get all of your tax expenses paid for this year.





Click on the below link and follow the directions.





You won't be disappointed!

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