Key insights
- The post discusses a tax-loss harvesting strategy and whether a wash sale will be triggered. Selling all shares at a loss and repurchasing after 31 days avoids the wash sale rule, allowing the investor to claim the capital loss for tax purposes. While this is tax-related, it has a slightly negative influence as it highlights potential losses in the market.
Hi- Any answers are much appreciated.
February 1- Buy 100 units of stock at 10 dollars
February 8- Buy 100 units of stock at 8 dollars.
February 15- Sell 200 units of stock (all of it) at 7 dollars.
Will this trigger a wash sale? My understanding is that it will not because there are no remaining positions to transfer the loss to.
I can repurchase a similar security from March 16th onward, without triggering a wash sale also, right?
Edit: March 18th*** It needs to be 31 days, and February is a short month. Apologies.
Thanks!!!