Wash Sale Rule Clarity

I need some final clarity on this because I keep getting different information from every CPA that I talk to.

Total Gains for the Year on Stock A: $10,000

6/30/21 Buy Stock B for a total of $20,000

7/15/21 Sell Stock B for a total of $5,000

Now we should have a total Capital Gain/Loss of ($5,000). (10k – 15k)

7/30 Buy Stock B Again for a total of $5,000

Now we should have a total Capital Gain/Loss of $10,000. (correct me if i'm wrong, because the -15k is now a wash sale)

11/30/21 Sell Stock B again for $2,000

At this point you never touch Stock B again.


Stock B has a total loss of ($18,000). (correct me if i'm wrong,30 days has passed and the wash sale no longer applies)

30 days have gone by in the year, and now the year has ended.

After speaking with a Tax Rep at TD, to my understanding, if you do not re-purchase the stock within 30 days the wash sale is reversed and all is back to normal (correct me if i'm wrong, you can claim the 18k loss). the reasoning behind the wash sale losses is that you don't just tax harvest on 12/31 and rebuy the next year. I've talked with a TD rep and this is what he has told me, but some of my 1099's have wash sales from stocks I have been completely out of since like June, but i'm not sure if this is because i transferred the stocks to another account and it will show the reversal there.

i'm going to call TD tomorrow but i'm kind of stressed out right now over this. I'm still waiting for the 1099 on my main account.

QUESTION AT HAND: what is the capital gain / loss for 2021?

Is it +10k on Stock A and -18k on Stock B (since 30 days have gone by and the wash sale is reversed) giving us a total of an 8k Loss?

Is it +10k on Stock A and -3k on stock B because the first sale on stock B of 10k cannot be claimed = +7k gain?

Is it a different variation because the cost basis has changed and the earlier sale could not be recorded at a loss?

I need to know once and for all, google is not showing me any type of information on understandinghow the wash sale works if you stay out of a stock after incurring a wash sale, and the 30 days is within the same tax year..

Appreciate any genuine responses.


Leave a Reply

Your email address will not be published. Required fields are marked *