On Monday, February 6, 2023 at 9:21:29 AM UTC-8, Stuart O. Bronstein wrote:
Thanks Alan. The real problem turned out to be that he has stock that
becomes vested every month. As long as that is the case, selling stock
in that same company will always come under the wash sale rule.
Two observations:
(1) It only applies to stock sold at a loss. So if there are multiple lots to choose from, one could perhaps find ones with only a small gain and avoid
the loss that triggers the wash sale.
(2) If this is something that the RSU owner wants to do on an on-going basis, some of the plans allow one to immediately sell the shares on vesting. In that case, there would be $0 gain and again no loss.
If one wants to get the benefit of the loss, then dealing with the wash sale will be required. This presumes that a much larger number of shares are
being sold than the monthly vesting --- otherwise it doesn't make tax sense
as the loss won't be allowed. But one should then time the sale so that there are only two vesting in the 60-day window instead of potentially 3 (like selling
on January 30th for 1st of month vesting).
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)