matrix_testing_ans
New member
I had the following question on wash sales. Assume a person buys 100 shares at $5 each on Jan 1, and then on Jan 2 the price dips to $4 and the person buys 100 more shares. On Jan 3, she sells all of the 200 at $4.6, netting a gain of 10c per share = $20 profit. Would wash sales rule apply here? Or is it ok if she pays capital gains tax on the $20 profit? Thanks in advance for all answers.
But wouldn't the IRS see it as as loss trade on the first 100 shares and a gain on the second 100 shares canceling each other out for a net profit? This is the part that confuses me.
But wouldn't the IRS see it as as loss trade on the first 100 shares and a gain on the second 100 shares canceling each other out for a net profit? This is the part that confuses me.