Wash Sales Rule - 3 purchases in one week.?

I understand the basics of the rule but I'm confused about this scenario:





Within 30 days


3 separate purchases of the same stock.


The first 2 result in losses.





Purchase #1 loss = cannot take loss, move cost basis to #2.


But since #2 is also a loss does that mean it moves to purchase #3?





I understand that the holding time of the 1st purchase is added to the 2nd, but in this scenario ALL 3 purchases are still within 30 days.Wash Sales Rule - 3 purchases in one week.?
Yes, that is correct. When done, the first two sales result in no taxable gain or loss and all will be recognized at the time of the third sale, assuming there are no further purchases within 30 days of the third sale.Wash Sales Rule - 3 purchases in one week.?
The number of purchases don't matter, and each purchase is considered on its own.





You don't mention selling any of the stock, or if so, when it was sold. Only a sale, not a purchase, can generate a wash sale.





A wash sale occurs if you sell stock and a loss, and within 30 days before or after the sale, you buy or otherwise acquire substantially identical stock.





In your scenario above, if you SOLD the stock purchased in the first 2 purchases in that same 30 days, or within 30 days of the next purchase, yes you'd end up with the two losses rolled into the basis of the third lot.





I'm not sure what you are saying in your last sentence. Holding time is something unrelated to the wash sale rule. You could have stock that you had held for 50 years - if you sold it at a loss then rebought it within 30 days, it would still be a wash sale.
what are you talking about?