Wash Rule ?

[MedRxman]

Stock "X" owned for 3 years has fallen and I double up and
hold the new purchase for 31 days.

Now I also want to buy more and sell the original shares for
a tax loss. Will this avoid the wash rule.

 

[Barry Margolin]

Stock "X" owned for 3 years has fallen and I double up and
hold the new purchase for 31 days.

Now I also want to buy more and sell the original shares for
a tax loss. Will this avoid the wash rule.

If the sale and new purchase are within 30 days of each
other, you'll have a wash sale. However, the shares that
were purchased 31 days earlier will not be involved in this.

 

[IraS1]

Stock "X" owned for 3 years has fallen and I double up and

hold the new purchase for 31 days.

Now I also want to buy more and sell the original shares for
a tax loss. Will this avoid the wash rule.

Not if you buy *any* additional shares within 30 days either
side of the sale.

Ira Smilovitz

 

[Arthur Kamlet]

Stock "X" owned for 3 years has fallen and I double up and
hold the new purchase for 31 days.

Now I also want to buy more and sell the original shares for
a tax loss. Will this avoid the wash rule.

Yes.

"Doubling up" is the technique, as you have correctly named
it, of buying the same number of shares you wish to sell at
a loss, then waiting 31 days and selling for a loss. That
sale is not a wash sale.

Of course, during those 31 days the price might have fallen
drastically, or the stock might have increased so much there
is no loss to be had :^)

The 31 days is considered sufficient risk that you no longer
have a wash sale.

__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

 

[Phil Marti]

Stock "X" owned for 3 years has fallen and I double up and
hold the new purchase for 31 days.

Now I also want to buy more and sell the original shares for
a tax loss. Will this avoid the wash rule.

The 30 day periods that apply are before and after the loss
sale. What you've done in the past doesn't matter. If you
want to sell and buy more, you have to wait on the buy.

Phil Marti
Clarksburg, MD