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