Sentences with phrase «wash sale purposes»
The day 3 sale is a loss, and for wash sale purposes we ignore the day 1 buy (because of the new rule), and treat it as being washed by 1 share of the day 2 buy.
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This hypothetical illustration assumes the investor met the holding requirement for long - term capital gains tax rates (longer than one year), the gains were taxed at the current maximum federal rate of 23.8 %, and the loss was not disallowed for tax purposes due to a wash sale, related party sale, or other reason.
Other free tools include a profit - and - loss calculator, a probability calculator (that uses implied volatility to determine your likelihood of hitting your targets) and the Maxit Tax Manager, which identifies tax implications of trading decisions (e.g., as short - and long - term gains and losses, wash sales) for planning purposes and generates on - demand 1099 forms.
The tax regulations say that if two different stocks are linked together in such a way that any change in the price of one will be reflected in the price of another, they're likely to be treated as substantially identical securities for purposes of the wash sale rule.
His expertise was requested on the question of when different securities, and in particular, different ETFs, might be considered substantially identical for purposes of the wash sale rule.
You can't claim losses generated by wash sales for tax purposes.
The idea is that the IRA is a distinct «person» for tax purposes, and the wash sale rule shouldn't apply if the replacement shares are bought by a different person.