Personal Finance

Wash trade capital gains question

  • Last Updated:
  • Apr 29th, 2014 10:41 pm
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[OP]
Deal Fanatic
Sep 4, 2009
6575 posts
716 upvotes

Wash trade capital gains question

When does wash trade rule apply?

June 1 bought xyz $400 1 share
June 5 sold xyz $300 1 share
July 15 bought xyz $200 1 share
August 20 sold xyz $100 1 share
August 22 bought back xyz $75 share

Because I bought back on August 22 that I sold on August 20th, I cannot claim the capital loss. But does this affect the loss I suffered on June 5th, or will the wash trade apply only to that one trade on August 20th?
4 replies
Deal Addict
Oct 4, 2009
2544 posts
1347 upvotes
Montreal
Only the 20th. You own 1 share with an ACB of $175.
[OP]
Deal Fanatic
Sep 4, 2009
6575 posts
716 upvotes
S5 wrote:
Apr 29th, 2014 10:17 pm
Only the 20th. You own 1 share with an ACB of $175.
Ok thanks.

Would a wash trade apply if I had many buys and sells, but closed out all positions in that stock. Can I just claim a loss on the stock overall if I no longer owned the stock even if I had several washed trades in there?
Deal Addict
Oct 4, 2009
2544 posts
1347 upvotes
Montreal
Once you no longer own any stock for 30 days, sure.

BTW not sure where "wash trade" is coming from, what you are discussing is a superficial loss. Lots of info available if you google that term.
[OP]
Deal Fanatic
Sep 4, 2009
6575 posts
716 upvotes
yes I meant superficial loss Sorry.

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