$THBR $TSLA ok guys I'm back on this wash sale bullshit it's literally not making sense to me at all and driving me crazy everyone has a different answer. From what I read if you sell a stock at a loss and rebuy the loss doesn't count, but obviously there's much more to it than that because I have done that a million times last year with LCA when I was negative buying and selling it when I was down day trading it to lower my average until it broke out. Anyway the end of the year my overall profit was 10k exactly what I expected it to be reflected in my overall portfolio but it said I had 250k in wash sales. So why did these wash sales not effect me at all? I've also day traded THBR a million times but also kept a core position and its driving me crazy wondering if my total gain/loss currently on THBR is a real reflection of what I've actually made?
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@EpsteinsDayCare @metanurb21 You have $20 cash to start. 1. Buy 1 share for $15 2. Sell for $10, $5 loss realized 3. Buy stock again before 30 days, the $5 realized loss no longer exists. If you bought it back at lower $5, you have 1 share at $5 and $10 cash and 0 realized loss/gain but you are down $5. 4. If you bought it back higher at $15 before 30 days, you have 1 share at $15, $0 cash, and 0 realized gain/loss. Same scenario but you buy back after 30 days: 3a. 1 share at $5, $10 cash, $5 realized loss that you can apply to realized profits elsewhere 4a. 1 share $15, $0 cash, $5 realized loss to apply elsewhere this is my understanding for the rule but I am not a CPA so you should talk to your CPA if you’re having difficulty with this.
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@RoomNine @EpsteinsDayCare @metanurb21 yeah but read this though thats only if you're trying to write those losses off and still holding the stock into the next year according to this article seems like it doesn't apply when day trading. As I said I had 250k of wash sales last year and didn't affect me at all
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