How is the wash sale calculated?
In general, you have a wash sale if you sell stock at a loss and buy substantially identical securities within 30 days before or after the sale. The wash sale period for any sale at a loss consists of 61 days: the day of the sale, the 30 days before the sale and the 30 days after the sale. There is no penalty when a wash sale occurs, but the loss that is related to the shares which were acquired as part of the wash sale is deferred. For more information, consult your advisor or IRS publication 550, which is available on the IRS website.
In general, you have a wash sale if you sell stock at a loss and buy a substantially identical security within 30 days before or after the sale. The wash sale period for any sale at a loss consists of 61 days: the day of the sale, the 30 days before the sale and the 30 days after the sale. There is no penalty when a wash sale occurs, but the deduction for the loss that is related to the shares which were acquired as part of the wash sale is deferred. For more information, consult your advisor or IRS publication 550, which is available on the IRS website.
