04-01-2022, 07:55 PM
if you buy a 1 stock for $100 and it falls to $90 and you sell, then rebuy an hour l
<!-- SC_OFF --><div class="md"><p>Question 1: if you buy a 1 stock for $100 and it falls to $90 and you sell, then rebuy an hour later at $90 and it falls to $80 and you sell, you've lost a total of $20. Is $20 a capital loss that you can use for NEXT year's capital gains offset, irrespective of violating wash sale? </p> <p>Question 2: For your tax year 2021 if you have </p> <p>Proceeds X<br/> Cost Basis Y<br/> Wash Sale Disallowed W<br/> Net Loss Z</p> <p>Does this mean that Z can be used to deduct against your income for your 2021 income?</p> <p>I am trying to understand the purpose of "Net Loss" (after wash sale disallow) vs total capital loss for 2021, which is 3<em>Z. I actually lost 3</em>Z of my own money and dont know how to reconcile it. </p> <p>In other words, suppose you lose $200k in 2021, and in 2022 you make back $200k, netting you 0. If the way you "lost" the 200k had wash sale rules all over it, do you now owe taxes on the money you made back despite having no capital gains?</p> <p>Does the brokerage 1099b include basis adjustments from the previous tax year?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/rook2pawn"> /u/rook2pawn </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/ttfjlu/if_you_buy_a_1_stock_for_100_and_it_falls_to_90/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/ttfjlu/if_you_buy_a_1_stock_for_100_and_it_falls_to_90/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Question 1: if you buy a 1 stock for $100 and it falls to $90 and you sell, then rebuy an hour later at $90 and it falls to $80 and you sell, you've lost a total of $20. Is $20 a capital loss that you can use for NEXT year's capital gains offset, irrespective of violating wash sale? </p> <p>Question 2: For your tax year 2021 if you have </p> <p>Proceeds X<br/> Cost Basis Y<br/> Wash Sale Disallowed W<br/> Net Loss Z</p> <p>Does this mean that Z can be used to deduct against your income for your 2021 income?</p> <p>I am trying to understand the purpose of "Net Loss" (after wash sale disallow) vs total capital loss for 2021, which is 3<em>Z. I actually lost 3</em>Z of my own money and dont know how to reconcile it. </p> <p>In other words, suppose you lose $200k in 2021, and in 2022 you make back $200k, netting you 0. If the way you "lost" the 200k had wash sale rules all over it, do you now owe taxes on the money you made back despite having no capital gains?</p> <p>Does the brokerage 1099b include basis adjustments from the previous tax year?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/rook2pawn"> /u/rook2pawn </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/ttfjlu/if_you_buy_a_1_stock_for_100_and_it_falls_to_90/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/ttfjlu/if_you_buy_a_1_stock_for_100_and_it_falls_to_90/">[comments]</a></span>Kind Regards R