Do washsale rules apply if all positioned are closed before end of year?

Forum|Forum|1 year ago
December 27, 2024
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As posted in subject... my understanding is that wash sales is really applies to losses on securities that are repurchased with 31 days. I have similar situation where I purchased an ETF in Oct 2024 and sold for a loss in Nov. I then repurchased the same ETF on Dec 20th (within the 30 day). So right now the loss from Nov close is added to cost basis for Dec 20th purchase.

* Am I right in thinking that if I sell all of that ETF share positions before Dec 31st, the wash sale rule won't apply because all my profit/losses would have settled?

* Are there any additional considerations on purchases of same security in the new year? (I don't plan on doing that but figured it could be helpful to wider audience).

Mike9241

the wash sale rules still apply but because all the positions were closed by the end of the year the wash sale losses are allowed. 2 caveats. 1) a security sold at a loss at the end of the year with a settlement date in 2025 is not recognized until 2025. 2) even though all the positions are closed by 12/31/2024 any purchase of substantially identical securities In January 2025 within the 31 days of the 2024 sale will trigger a wash sale if the 2024 sale was at a loss.