Hi, I have a question. I’m heavy bag holding. Friends financial person told me to sell stuff in December to claim losses (so dumb). I sold my 50k loss and then remembered the Wash Sale rule.
So say I buy back in first thing next year, I’d waive that 50k loss and be starting at this new low value that, potentially, if I recovered my 50k loss on I’d have to pay 50k in taxes on?
Like say I bought shares at 10$
It’s at 1$ (I sell)
Then I buy back at 1$
It recovers to 10$
Do I now owe tax on the 9$ increase despite having made no profit over my time?? Because wash sale wipes out my claimable loss from my -9$ sale?
Essentially asking am I now screwed into waiting out the 30 days or can I buy back in Jan 1 and continue my peaceful bag hold back to break even share price?
Leave a Reply