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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15711
Experience:  15years with H & R Block. Divisional leader, Instructor
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I have a question about trading stocks and taxes. client

Customer Question

hi i have a question about trading stocks and taxes.
client activity
buy 1000 shares ABC on 1/10/2015 @ $15
buy 200 shares ABC on 5/20/2015 @ $7
sell 200 shares ABC on 5/25/2015 @ $10
buy 200 shares ABC on 5/30/2015 @ $7
sell 200 shares ABC on 6/10/2015 @ $10
sell 1000 shares ABC on 9/10/2015 @ $4
am i allowed to record a loss on the 1,000 shares
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
in this example im trying to lower the cost average of the original purchase while keeping the amount of capital invested at a minimum. thank you btw for the help
Expert:  Robin D. replied 1 year ago.


Under the wash-sale rules, if you sell stock for a loss and buy it back within 30 days before or after the loss-sale date, the loss cannot be immediately claimed for tax purposes.

The rule applies to a 30-day period before or after the sale date to prevent "buying the stock back" before it's even sold.

The disallowed amount is added to the cost of the repurchased stock. So the loss can be claimed when the stock is finally disposed of, other than in a wash sale.

You have to add the loss on the sales to the new stock purchased.

Expert:  Robin D. replied 1 year ago.

If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.