Skip to main content
March 17, 2025
Solved

How to apply wash sale loss to repurchased security cost basis

  • March 17, 2025
  • 1 reply
  • 0 views

I purchased 400 shares of X on 4/15/24. I sold 200 of those shares on 7/17/24 for a profit. I then sold the remaining 200 shares on 9/6/24 at a loss. I then repurchased 500 shares of X on 9/24/24 which then created wash sale condition for the 200 shares sold at a loss on 9/6/24.

I then sold the 500 shares of X on 11/6/24 in the morning at a profit. 

I bought another 500 shares of X an hour later and sold those shares in the afternoon on the same day (11/6/24) at a loss.

On 11/13/24 I purchased a series of shares of X throughout the day (100, 200, & 500 shares).

On 11/19/24 I purchased additional 400 shares of X

I then sold all 1200 shares of X on 11/21/24 at a profit.

 

Later, I purchased additional 500 shares of X on 12/10/24 and additional 50 shares of X on 12/11/24 which I did not sell.

 

Based on the activity listed above, I have 2 wash sales that were triggered (the 200 shares sold on 9/6/24 and again with the 2nd 500 shares sold on 11/6/24 at a loss.

 

My question is which repurchase do I apply the wash sale loss to the cost basis for each wash sale that was triggered? Also what is the adjusted acquisition date for each one?

Best answer by Mike9241

if you used a US broker they will do the adjusting of the basis and holding period of the shares that created the wash sale. you need to do nothing. If you got a 1099-B then the wash sales issue should be properly reflected

reflected 

 

one way to tell is to look at what's reported as cost for the 500 shares purchased on 9/24. 200 shares should have a higher tax basis then what you paid due to the wash sale. 

 

1 reply

Mike9241Answer
March 17, 2025

if you used a US broker they will do the adjusting of the basis and holding period of the shares that created the wash sale. you need to do nothing. If you got a 1099-B then the wash sales issue should be properly reflected

reflected 

 

one way to tell is to look at what's reported as cost for the 500 shares purchased on 9/24. 200 shares should have a higher tax basis then what you paid due to the wash sale. 

 

AussieAuthor
March 17, 2025

You are correct. I checked my 1099-B and the wash sale loss is reflected on the cost basis for the subsequent repurchases and I don't need to do anything. I didn't see that before so thank you!!