Cross Brokerage Wash Sale Help Needed
Cross Brokerage Wash Sale Help Needed
Loading saved threads...
Ravin Abraham · External communityPost link
External question — Personal Finance Stack Exchange
Author: Ravin Abraham
Original post: https://money.stackexchange.com/questions/154950
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
The following trades happened in a month:
Day 4: Bought 83 Shares of Company A using Fidelity
Day 5: Bought 118 Shares of Company A using E-Trade
Day 7: Sold 118 Shares of Company A bought in E-Trade at 3700$ loss
Day 14: Sold 83 Shares of Company A bought in Fidelity at 5700$ loss
Both of the loss making sell transactions fall under wash-sale exclusion rules of a purchase done in a 30 day before or after window? Are both the losses dis-allowed for tax purposes?
Any recommendations?
Quote
Report
Stan H · External communityPost link
External answer — Personal Finance Stack Exchange
Author: Stan H
Original post: https://money.stackexchange.com/a/154952
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
Since all shares purchased were sold, as long as all transactions were done in the same tax year, and no other transactions could trigger a wash sale, it won't make a difference on your tax return.
Technically speaking, 83 of the day 7 shares sold should fall under the wash sale rule (with the remaining 35 not subject to a wash sale), and the disallowed loss added to the basis of the day 4 purchase shares. When you sell the 83 on day 14, the disallowed loss would then be recognized. Since everything was in the same tax year, there's no impact on your overall gain/loss.
The same would happen if all of those transactions were done at Fidelity in the same order (or E*TRADE) - I'm not sure if they would even report that on your 1099-DIV as a wash sale.
Quote
Report
Post Reply
Quoted from Forex.com.bd-Editorial External answer — Personal Finance Stack Exchange Author: Stan H Source score (net votes, not local likes): 1 Original post: https://money.stackexchange.com/a/154952 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Since all shares purchased were sold, as long as all transactions were done in the same tax year, and no other transactions could trigger a wash sale, it won't make a difference on your tax return. Technically speaking, 83 of the day 7 shares sold should fall under the wash sale rule (with the remaining 35 not subject to a wash sale), and the disallowed loss added to the basis of the day 4 purchase shares. When you sell the 83 on day 14, the disallowed loss would then be recognized. Since everything was in the same tax year, there's no impact on your overall gain/loss. The same would happen if all of those transactions were done at Fidelity in the same order (or E*TRADE) - I'm not sure if they would even report that on your 1099-DIV as a wash sale.
Checking account access…