Is this a wash sale?

[void.no....@gmail.com]

Let's say I own some shares of XYZ stock that was purchased less than
a year ago, and it is currently at a loss.

Let's say I also own some shares of XYZ stock that was purchased more
than a year ago, and it is currently at a profit.

Now let's say I sell all of my XYZ and come out with an overall gain.
Would those short term shares of XYZ still be considered a wash sale,
since they would be at a loss? I want to buy back my shares of XYZ
within the 30 day period.

[Phil Marti]

<void.no....@gmail.com> wrote:

> Let's say I own some shares of XYZ stock that was purchased less than
> a year ago, and it is currently at a loss.
>
> Let's say I also own some shares of XYZ stock that was purchased more
> than a year ago, and it is currently at a profit.

Just to keep things as simple as possible, the holding periods are
irrelevant to the wash sale question. (I peeked ahead.)

> Now let's say I sell all of my XYZ and come out with an overall gain.
> Would those short term shares of XYZ still be considered a wash sale,
> since they would be at a loss? I want to buy back my shares of XYZ
> within the 30 day period.

If you sell at a loss and replace those shares within 30 days it's a wash
sale. There is no basis averaging for stocks, so we're looking at the
specific shares sold for a loss. If you sold 50 shares at a loss and buy
shares within 30 days, the loss is a wash sale up to 50 shares repurchased.

See IRS Publication 550.
--
Phil Marti
Clarksburg, MD