Is this a wash sale Buy 50 shares at 25 for Cost $1250 Stock drops to 5.00. Loss now $1000 ... While still holding those shares I cost average in at 5 dollars buying 1000 additional shares at $5.00 a piece . Buy 1000 shares at $5.00 ..Cost average now: 1250 original Cost 50 shares at 25 plus $5000 for new shares 1000 at 5 dollars $6250/1050 shares Cost average now $5.95 I sell all 1050 shares at $6.00 Profit $52.50 Is this a wash sale? Yes or no?
A wash sale is meant to point at the ability to claim tax relief on a loss, but if you didn't sell and bought on the same market, essentially averaging your position, I don't think that would qualify as a wash sale. The key here, I think, is that you did not sell before buying again. https://www.investopedia.com/terms/w/washsale.asp
That's exactly what I thought. But they are saying other wise. Going into my history The Original shares were bought in Jan of 2023. There was not a sell at all on those shares . I bought more shares in jan 2024 to cost average in and sold all shares together, the original bought in jan 2023 and the new shares bought in January 2024 a few days later My broker is claiming there is a wash sale and I know for a fact there cannot be.
not a wash for many reasons. Having worked at a brokerage, their training is fast and not comprehensive at all. If you were speaking to a general cust service rep, ask to speak to their cost basis or reporting department. I'm sure they'll confirm not a wash.
This just tells me there could be numerous errors from past 1099s I have received throughout the years. .you know how many times I have received an updated 1099 after receiving the first one for taxes.
The data you provided, Buy 50 shares at $25, Jan, 2023 Buy 1000 shares at $5, Jan XX, 2024 Sell 1050 shares at $6, Jan XX+Y, 2024 is not a wash sale because 50 shares were bought more than 30 days before the sale 1000 shares were sold at a profit https://www.investopedia.com/terms/...lls a security,a similar position too quickly.
If you have no enemy, then it is not a wash sale. If you have enemy, then it might be a wash sale. I see that the amount is small. I doubt the regulator is interested in such a case.
You have to consider your FIFO cost, not your weighted cost. Buy 100 shares at $10 Buy 100 shares at $5 Weighted cost = 200 shares at 7.50 However if you sell 100 shares, you now have 100 shares at a cost of $5. If you sold 101 shares, you now have 99 shares at a cost of $5. These are the numbers that the year end spreadsheet from your broker will be using for tax.