Buy 500 xyz @ 20...Sell 500 xyz @ 20.01...(trade goes against you, get out fast) net "profit" $5.00. After r/t commissions of ~ $20 net "loss" of -$15. Is this considered a wash sale? Thanks
Prosco, Not as you phrased the question. As long as you have no position in xyz within the next 30 days you are fine. Your Example sold xyz for a $10 loss. Buy xzy for a and sell for a $5 loss, (commissions are added to your basis.) You have to wait 30 days to reenter the position to avoid the wash sale rule. If you buy the position back after 25 days and let's assume xyz is a $20 stock. Then you would add the $15 in losses to the $20 price and your new basis for tax purposes becomes $35. Also, FYI the wash sale rule does not apply to gains.