REG – Wash Sale Loss

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This topic contains 2 replies, has 2 voices, and was last updated by  Soproudofmyself 4 years, 6 months ago.

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  • #166564

    Soproudofmyself
    Participant

    Example in Becker book.

    100 shares purchased on 9/8/82 cost $22,000 date of sale 4/20/09 at $21,000 realized loss of $1,000

    100 shares purchased on 4/25/09 cost $21,500

    The additional purchase on 4/25/09 would make this a wash sale. $1,000 realized loss is not recognized because the additional purchase occured within 30 days of the sale on 4/20/09. Makes sense, but shouldn’t the disallowed be $500? Becker says the entire $1,000 loss would be disallowed.

    #324614

    bobkorz
    Member

    Why would only 50% of the loss be disallowed when you re bought 100% of the shares? 100% of the loss is disallowed and added to the basis. So the new basis is $21500 + $1000 = $22500

    #324615

    Soproudofmyself
    Participant

    I thought I had to take the basis of the new stock to calculate my loss…not 50% of the loss

    thanks

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