OK, let's say in late December, 2021, you buy 1000 sh. of XYZ at 10 and
sell it at 9, so you lose $1000. Furthermore, suppose you do this 5
times, so you have $5000 in losses for 2021 all accrued in late December.

Now suppose for some reason you don't want to claim this loss in 2021.

So, if you buy/sell XYZ in early January, 2022, will the wash sale move
that loss into 2022?

Mel

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MZB <moo@noway.prudigy.net> wrote:

OK, let's say in late December, 2021, you buy 1000 sh. of XYZ at
10 and sell it at 9, so you lose $1000. Furthermore, suppose you
do this 5 times, so you have $5000 in losses for 2021 all accrued
in late December.

Now suppose for some reason you don't want to claim this loss in
2021.

So, if you buy/sell XYZ in early January, 2022, will the wash sale
move that loss into 2022?

The whole purpose of the wash sale rule is to disallow a loss (it
doesn't apply to gains) from the sale and acquisition of the same
stock within 30 days. So no, you can't move the loss to 2022. In
fact the wash sale rule would prevent you from recognizing the loss
at all within that time period. You may be able to recognize the
loss in 2022 if you wait more than 30 days.

But you're actually talking about something else - shifting income or
a loss to another year. People have tried that in many forms - they
call them stradles. Some have been successful, but for the most
part, as I recall, they are not allowed.


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Stu
http://DownToEarthLawyer.com

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On Thursday, January 6, 2022 at 10:18:44 AM UTC-5, MZB wrote:

OK, let's say in late December, 2021, you buy 1000 sh. of XYZ at 10 and
sell it at 9, so you lose $1000. Furthermore, suppose you do this 5
times, so you have $5000 in losses for 2021 all accrued in late December.

Now suppose for some reason you don't want to claim this loss in 2021.

So, if you buy/sell XYZ in early January, 2022, will the wash sale move
that loss into 2022?

Mel

--

Yes, you can push a loss forward by triggering a wash sale and not selling the replacement shares until the new year. What you can't do is push a gain forward. Once you have a realized gain, it must be recognized (that is, included on the current tax
return.)

Ira Smilovitz, EA
Leonia, NJ

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ira smilovitz <ira.smilovitz@gmail.com> wrote:

UTC-5, MZB wrote:

OK, let's say in late December, 2021, you buy 1000 sh. of XYZ at
10 and sell it at 9, so you lose $1000. Furthermore, suppose you
do this 5 times, so you have $5000 in losses for 2021 all accrued
in late December.

Now suppose for some reason you don't want to claim this loss in
2021.

So, if you buy/sell XYZ in early January, 2022, will the wash
sale move that loss into 2022?

Yes, you can push a loss forward by triggering a wash sale and not
selling the replacement shares until the new year. What you can't
do is push a gain forward. Once you have a realized gain, it must
be recognized (that is, included on the current tax return.)

I defer to Ira. Thanks.


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Stu
http://DownToEarthLawyer.com

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On 1/6/2022 12:40 PM, ira smilovitz wrote:

On Thursday, January 6, 2022 at 10:18:44 AM UTC-5, MZB wrote:

OK, let's say in late December, 2021, you buy 1000 sh. of XYZ at 10 and
sell it at 9, so you lose $1000. Furthermore, suppose you do this 5
times, so you have $5000 in losses for 2021 all accrued in late December.

Now suppose for some reason you don't want to claim this loss in 2021.

So, if you buy/sell XYZ in early January, 2022, will the wash sale move
that loss into 2022?

Mel

--

Yes, you can push a loss forward by triggering a wash sale and not selling the replacement shares until the new year. What you can't do is push a gain forward. Once you have a realized gain, it must be recognized (that is, included on the current tax

return.)

Ira Smilovitz, EA
Leonia, NJ

Well, I did try it and I think it worked. I bought XYZ say at 10. But my
cost shown on Ameritrade is higher, enough to push the loss taken away
last year into this year.

Mel

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<< The foregoing was not intended or written to be used, >>
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