If I bought a stock and sold it the next day for a profit then bought it again and sold it for a loss within 30 days, am I suppose to take the loss and apply it to my cost basis for the first purchase? I am using Turbo Tax and when there is a wash sale event, it assumes that I held on to the stock for the rest of the year. HELP!
2007-04-16 10:15:38 · 2 answers · asked by nycjoe29 2 in Business & Finance ➔ Taxes ➔ United States
No, only a loss on the first leg of the transactions is affected by the wash sale rule. If you had a gain on the first sale, wash sale rule doesn't apply.
2007-04-16 12:46:49 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
No, you could no longer defer a benefit, you could purely defer a loss. particular, once you recognize a benefit, it is your accountability to verify you have the money for the taxes. An unrealized loss isn't a loss for tax purposes. The wash sale rule is merely for one purpose: to evade human beings from determining a loss on the final day of the year just to cut back their tax bill.
2016-12-26 10:24:46 · answer #2 · answered by Anonymous · 0⤊ 0⤋