I know that it’s 31 days before or after loss sale.
I know it loss from the wash is transferred to the cost basis if it’s purchased again within 31 days.
Does this mean that all wash sales eventually accrual the same loss? Just deferred to the next time u sell the wash sale? What I mean is you don’t actually lose the loss if you buy again, but just adds to the cost basis the next time u violate the wash sale rules?
If this is so, then why are there nightmare stories of (day)traders that owe much more in taxes than they even made on their P/L?
What am I missing? (A lot prolly)
Thank you.
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