End of year is coming, and many of us might be looking to harvest some tax losses…
I bought NVDA recently, before the price drops, and then bought some more within about two weeks of that. Then I sold some a week or two after my last purchase, in order to harvest a tax loss and yield some cash to keep my leverage low. BUT - the wash sale rule kicked in because of my second purchase. I didn’t realize that this would happen. I just thought that I couldn’t re-buy any more shares for 30 (31?) days, but the wash sale rule is more complicated than that. Once you make a second purchase, you can’t sell for 30 days.
I’m pretty sure this wouldn’t have happened if my second purchase had been made more than 30 days after the first.
Another important point to avoid a Wash Sale issue:
- You sell ABCD in a taxable account at a loss.
- Within ±30 days, you purchase ABCD in an IRA or other retirement account.
You lose the deduction for the loss.
All holdings and some statistics on my profile page
Once you make a second purchase, you can’t sell for 30 days.
I’m curious how the wash sale rule is applied to multiple accounts? If a person has a standard brokerage account at three different brokers, does the rule apply across the board, or just to each broker?
does the rule apply across the board, or just to each broker?
Across the board: https://tickertape.tdameritrade.com/personal-finance/track-w…
Brokers will do what they can, but it’s still up to the taxpayer to catch different CUSIP, different account, and different brokerage “substantially identical securities.”