%% Thats why as they say, ''a good CPA will pay for himself or herself in a minute'' Could have had a Roth/back door Roth also. Actually with the commissions + fine print on annuities/he[insurance co] may still do well this year....................................,
If you continue reading you will see "For example, consider the case of an investor who purchased 100 shares of Microsoft for $33, sold the shares at $30, and within 30 days bought 100 shares at $32. In this case, while the loss of $300 would be disallowed by the IRS because of the wash-sale rule, it can be added to the $3,200 cost of the new purchase. The new cost basis, therefore, becomes $3,500 for the 100 shares that were purchased the second time, or $35 per share." You don't lose the loss deduction. You have to manually readjust your cost basis.
You're right, I missed that. Have I been misunderstanding the wash sale rule all my life? What is the point of it if it is just added to the cost basis of the new purchase? The result is basically the same. Why bother having a wash sale rule?
How does wash sale rule work with options? Does different strike and expiry date count as different security?
That article is grossly inaccurate & far from reality, you don't owe the IRS for you trading loses & I don't see any way they could dig very deep into his profits. Wash sales are a minor ding at worst in harvesting loses & at worst a minor ding on your profits - unless maybe you are trading the same stocks across an IRA & taxed acct.