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Deferring capital loss from 2021 to 2022?
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MZB
Jan 6, 2022, 10:18:44 AM1/6/22
to
OK, let's say in late December, 2021, you buy 1000 sh. of XYZ at 10 and
sell it at 9, so you lose $1000. Furthermore, suppose you do this 5
times, so you have $5000 in losses for 2021 all accrued in late December.
Now suppose for some reason you don't want to claim this loss in 2021.
So, if you buy/sell XYZ in early January, 2022, will the wash sale move
that loss into 2022?
Mel
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sell it at 9, so you lose $1000. Furthermore, suppose you do this 5
times, so you have $5000 in losses for 2021 all accrued in late December.
Now suppose for some reason you don't want to claim this loss in 2021.
So, if you buy/sell XYZ in early January, 2022, will the wash sale move
that loss into 2022?
Mel
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
Stuart O. Bronstein
Jan 6, 2022, 12:20:15 PM1/6/22
to
MZB <m...@noway.prudigy.net> wrote:
> OK, let's say in late December, 2021, you buy 1000 sh. of XYZ at
> 10 and sell it at 9, so you lose $1000. Furthermore, suppose you
> do this 5 times, so you have $5000 in losses for 2021 all accrued
> in late December.
>
> Now suppose for some reason you don't want to claim this loss in
> 2021.
>
> So, if you buy/sell XYZ in early January, 2022, will the wash sale
> move that loss into 2022?
The whole purpose of the wash sale rule is to disallow a loss (it
> OK, let's say in late December, 2021, you buy 1000 sh. of XYZ at
> 10 and sell it at 9, so you lose $1000. Furthermore, suppose you
> do this 5 times, so you have $5000 in losses for 2021 all accrued
> in late December.
>
> Now suppose for some reason you don't want to claim this loss in
> 2021.
>
> So, if you buy/sell XYZ in early January, 2022, will the wash sale
> move that loss into 2022?
doesn't apply to gains) from the sale and acquisition of the same
stock within 30 days. So no, you can't move the loss to 2022. In
fact the wash sale rule would prevent you from recognizing the loss
at all within that time period. You may be able to recognize the
loss in 2022 if you wait more than 30 days.
But you're actually talking about something else - shifting income or
a loss to another year. People have tried that in many forms - they
call them stradles. Some have been successful, but for the most
part, as I recall, they are not allowed.
--
Stu
http://DownToEarthLawyer.com
ira smilovitz
Jan 6, 2022, 12:45:29 PM1/6/22
to
On Thursday, January 6, 2022 at 10:18:44 AM UTC-5, MZB wrote:
> OK, let's say in late December, 2021, you buy 1000 sh. of XYZ at 10 and
> sell it at 9, so you lose $1000. Furthermore, suppose you do this 5
> times, so you have $5000 in losses for 2021 all accrued in late December.
>
> Now suppose for some reason you don't want to claim this loss in 2021.
>
> So, if you buy/sell XYZ in early January, 2022, will the wash sale move
> that loss into 2022?
>
> Mel
>
> --
Yes, you can push a loss forward by triggering a wash sale and not selling the replacement shares until the new year. What you can't do is push a gain forward. Once you have a realized gain, it must be recognized (that is, included on the current tax return.)
> OK, let's say in late December, 2021, you buy 1000 sh. of XYZ at 10 and
> sell it at 9, so you lose $1000. Furthermore, suppose you do this 5
> times, so you have $5000 in losses for 2021 all accrued in late December.
>
> Now suppose for some reason you don't want to claim this loss in 2021.
>
> So, if you buy/sell XYZ in early January, 2022, will the wash sale move
> that loss into 2022?
>
> Mel
>
> --
Ira Smilovitz, EA
Leonia, NJ
MZB
Jan 6, 2022, 1:56:13 PM1/6/22
to
On 1/6/2022 12:40 PM, ira smilovitz wrote:
> On Thursday, January 6, 2022 at 10:18:44 AM UTC-5, MZB wrote:
>> OK, let's say in late December, 2021, you buy 1000 sh. of XYZ at 10 and
>> sell it at 9, so you lose $1000. Furthermore, suppose you do this 5
>> times, so you have $5000 in losses for 2021 all accrued in late December.
>>
>> Now suppose for some reason you don't want to claim this loss in 2021.
>>
>> So, if you buy/sell XYZ in early January, 2022, will the wash sale move
>> that loss into 2022?
>>
>> Mel
>>
>> --
>
> Yes, you can push a loss forward by triggering a wash sale and not selling the replacement shares until the new year. What you can't do is push a gain forward. Once you have a realized gain, it must be recognized (that is, included on the current tax return.)
>
> Ira Smilovitz, EA
> Leonia, NJ
>
Well, I did try it and I think it worked. I bought XYZ say at 10. But my
> On Thursday, January 6, 2022 at 10:18:44 AM UTC-5, MZB wrote:
>> OK, let's say in late December, 2021, you buy 1000 sh. of XYZ at 10 and
>> sell it at 9, so you lose $1000. Furthermore, suppose you do this 5
>> times, so you have $5000 in losses for 2021 all accrued in late December.
>>
>> Now suppose for some reason you don't want to claim this loss in 2021.
>>
>> So, if you buy/sell XYZ in early January, 2022, will the wash sale move
>> that loss into 2022?
>>
>> Mel
>>
>> --
>
> Yes, you can push a loss forward by triggering a wash sale and not selling the replacement shares until the new year. What you can't do is push a gain forward. Once you have a realized gain, it must be recognized (that is, included on the current tax return.)
>
> Ira Smilovitz, EA
> Leonia, NJ
>
cost shown on Ameritrade is higher, enough to push the loss taken away
last year into this year.
Mel
Stuart O. Bronstein
Jan 6, 2022, 1:56:13 PM1/6/22
to
ira smilovitz <ira.sm...@gmail.com> wrote:
> UTC-5, MZB wrote:
>> OK, let's say in late December, 2021, you buy 1000 sh. of XYZ at
>> 10 and sell it at 9, so you lose $1000. Furthermore, suppose you
>> do this 5 times, so you have $5000 in losses for 2021 all accrued
>> in late December.
>>
>> Now suppose for some reason you don't want to claim this loss in
>> 2021.
>>
>> So, if you buy/sell XYZ in early January, 2022, will the wash
>> sale move that loss into 2022?
>
> UTC-5, MZB wrote:
>> OK, let's say in late December, 2021, you buy 1000 sh. of XYZ at
>> 10 and sell it at 9, so you lose $1000. Furthermore, suppose you
>> do this 5 times, so you have $5000 in losses for 2021 all accrued
>> in late December.
>>
>> Now suppose for some reason you don't want to claim this loss in
>> 2021.
>>
>> So, if you buy/sell XYZ in early January, 2022, will the wash
>> sale move that loss into 2022?
>
> Yes, you can push a loss forward by triggering a wash sale and not
> selling the replacement shares until the new year. What you can't
> do is push a gain forward. Once you have a realized gain, it must
> be recognized (that is, included on the current tax return.)
I defer to Ira. Thanks.
> selling the replacement shares until the new year. What you can't
> do is push a gain forward. Once you have a realized gain, it must
> be recognized (that is, included on the current tax return.)
--
Stu
http://DownToEarthLawyer.com
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