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Quick question about 2018


Pacun

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18 hours ago, Pacun said:

My understanding of a wash sale is that you sell stock and then your replace it with a similar one.

Pacun, a wash sale occurs when you sell a stock at a loss and repurchase it within 30 days + or - 

If you replace the stock with a similar one after a loss the loss is allowed and the basis of the similar stock is its purchase price.

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2 hours ago, Joel said:

Pacun, a wash sale occurs when you sell a stock at a loss and repurchase it within 30 days + or - 

If you replace the stock with a similar one after a loss the loss is allowed and the basis of the similar stock is its purchase price.

 

A wash sale occurs if the security is sold at a loss and the purchase of substantially identical security occurs within 30 days of the sale, either BEFORE OR AFTER the sale. 

This is why we see wash sales that occur with any mutual funds or drip plans that are sold at a loss during that 30 day period after dividends are reinvested. 

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