Hi there, I have wash sale related tax question - for example, Sold stock A on Nov 30th 2005, Bought and Sold the same stock at a LOSS on Dec 15th the same year. Therefore, it was a wash sale. There was no trade for the same stock in 2006. When can I report this loss for the tax purpose? Thanks.
2007-02-27 00:26:30 · 3 answers · asked by puzey 1 in Business & Finance ➔ Taxes ➔ United States
Here is what I understand you did:
(1) You bought the stock sometime before Nov. 30, 2005.
(2) You sold the stock on Nov. 30, 2005.
(3) You bought the stock on Dec. 15, 2005.
(4) You sold the stock the same day for a loss.
(5) You have not bought, sold, nor owned the stock since then.
If my understanding is correct, you should have claimed the loss on your 2005 taxes.
For a really good tutorial on the wash sale rules, see
http://www.fairmark.com/capgain/wash/index.htm
2007-02-27 01:30:28 · answer #1 · answered by zman492 7 · 0⤊ 0⤋
It does not sound like you still own this stock but if you do the disallowed wash sale loss is added to the cost basis and allowed when you finally sell it.
2007-02-27 09:47:29 · answer #2 · answered by spicertax 5 · 0⤊ 0⤋
You should be able to report it now for the 2006 tax year
2007-02-27 08:31:17 · answer #3 · answered by Army Gal 2 · 0⤊ 1⤋