This example pertains to day trading and all of the following transactions occurred in the same trading day:
- Purchase ABC - 100 Shares @ $5 = $500
- Sell ABC - 100 Shares @ $4 = $400 (Realized Ordinary loss of $100)
ABC Stock then drops even further
- Purchase ABC - 100 Shares $ 2 = $200 (Triggering a wash sale and thus increasing the actual cost basis from $200 to $300 due to the $100 realized ordinary loss earlier in the day)
- Sell ABC - 100 Shares $2.50 = $250
Total realized gain/(loss) on the day trades is a loss of $50
[link] [comments] https://www.reddit.com/r/stocks/comments/12cr14h/wash_sale_day_trading_example_please_confirm_if/
Login to add comment
Other posts in this group
Please use this thread to discuss your portfolio, learn of other stock tickers, and help out users by giving constructive criticism.
Why quarterly? Public comp
When you sell a stock to buy another stock, do you prefer to set the estimated amount of the capital gains taxes aside in a money market or do you think it better to
Saving for retirement is crucial, but relying solely on a 401(k) might not be enough due to high inflation. Consider investing in growth stocks, especially in the tec
I’m think this is not a good investment as there is no chatter at all on the 52 week low. They are involved in a class action lawsuits by investors and credit card co
Sorry if this is the wrong sub. Let’s say I had $1 million in VOO but I wanted to sell half of it to buy SCHD. It would suck to pay taxes on $500k. So how would you g
Hey guys, I did a deep dive into Crocs. In this analysis, I will do a brief breakdown of the company and go over some quantitative data, qualitative data and estimate
