Need wash sale help ...

[Closet_Gamer]

DW and I think we have found our target beach house dance but we've decided to take a different approach to the asset which will cause me to spend more than planned.

To raise the cash needed, I'm doing tax-efficient selling. Specifically:

I want to sell 720 shares of QQQ in various lots with a ($23K) long term loss.

Unfortunately, I bought 13 shares on January 30 for $3800. Those shares currently show a ($12) loss.

If I go ahead and just do the trade tomorrow, am I right in thinking that only $12 of the capital loss will be dis-allowed? (And therefore no issue.)

Or will the whole value of the Jan 30 shares ($3800) be deducted from the loss on the 720 shares?

Or, is there a third impact that I'm not thinking of?

To avoid a wash sale, I would have to wait until March 2 to execute my 720 share trade. Given market volatility, I would prefer to just raise the cash immediately.

Thanks for any advice

 

[Sunset]

[-]You could sell by lot, and not sell 13 shares of the lot that were in the Jan 30 purchase.

Then no washing.

Then wait until March 2 and sell the last 13 once they are in the clear.[/-]

<EDIT> => This is wrong !!!

 

[Closet_Gamer]

You could sell by lot, and not sell 13 shares of the lot that were in the Jan 30 purchase.

Then no washing.

Then wait until March 2 and sell the last 13 once they are in the clear.

Thanks.

I thought the fact that I had bought any shares within 30 days created a wash sale disallownce, regardless of whether that specific lot was sold?

 

[Sunset]

Thanks.

I thought the fact that I had bought any shares within 30 days created a wash sale disallownce, regardless of whether that specific lot was sold?

You are right .

Are you selling ALL the shares of this QQQ that you own ? If you sell ALL , there is no wash sale.

 

[Closet_Gamer]

You are right .

Are you selling ALL the shares of this QQQ that you own ? If you sell ALL , there is no wash sale.

LOL. I hate wash sale rules!

Not selling all.

Its a little over 2/3 of my outstanding position. These are just the most tax efficient lots. The lot purchases in January is not of the lots I'm selling.

Thanks!

 

[OnTheBeach]

Of the 720 shares originally sold - 13 shares were repurchased. The losses on those 13 shares will be "washed" into the shares purchased on 1/30. or just wait a few more days to sell the 720

 

[Closet_Gamer]

Of the 720 shares originally sold - 13 shares were repurchased. The losses on those 13 shares will be "washed" into the shares purchased on 1/30. or just wait a few more days to sell the 720

So it is a diminimus tax hit.

Especially since I will really just be piling up losses to offset gains in the future -- I'm not planning on selling any positive positions in 2023.

Thanks!