Hi, If there is anyone with proper knowledge regarding the wash sales rules which apply to schedule D I would really appreciate your help. I received my schedule D from 2 sources and the wash sale rule was applied differently therefore I decided to take the time to do some research and get some advice. I have the following situation: Buy 1000 shares of xyz stock @ $5.00 (for $5,000.00) on 2/2/2010 Buy 1000 shares of xyz stock @ $4.50 (for $4,500.00) on 2/2/2010 Sell 2000 shares of xyz stock @ $4.75 (for $9,500.00) on 2/2/2010 The first 1000 shares have a loss of $250.00 and should be reported as wash sales, in other words will prevent me to report the loss. But should not the loss be added to the basis of the replacement shares, which are the second 1000 shares? Thank you for your time.