Question

IF AN INDICATED WASH SALE IS FOR 450 SHS DOES THE OFF SETTING PURCASE(S) HAVE TO BE FOR AT LEAST 450 SHARES?

Forum|Forum|4 years ago
October 8, 2021
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Employee

I don't understand what you mean by an "offsetting purchase." If a sale is identified as a wash sale on your Form 1099-B, there was already a purchase of replacement shares. That's what made it a wash sale.

You should read the following, and the additional pages it links to, for a detailed explanation of wash sales.

The Wash Sale Rule

If a sale is marked as a wash sale on your 1099-B, you have to enter it as a wash sale on your tax return, with the adjustment as shown on the 1099-B.

fanfare

Employee

@EDDIE-B

To answer your question, if the triggering buy transaction is for fewer shares than you sold at a loss, you are denied the wash sale loss on that smaller number of shares. You can then take the loss deduction on the remaining shares.