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Tax Law (Questions About Taxes)/Wash Sale Replacement Shares

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Question
Good Morning.  

My name is Mike Derato and I am looking for additional clarification on what constitutes replacement shares. I have a few investments containing multiple purchases and sells which happen to occur within a 61-day window.  I have been trying to determine whether or not I can claim any part of the loss in the following situation.

1/13 Purchase 76 shares for $3,000
1/20 Sell     76 shares for $3,275  Gain

1/21 Purchase 77 shares for $3,100
1/28 Sell     77 shares for $2,831  Loss

2/13 Purchase 76 shares for $2,828

In this scenario, I recognize the 2/13 purchase to be a portion of the replacement shares.  My question is, does the 1/13 purchase also fall into this situation since it happens within the 61-day period even though those shares were sold to zero prior to the 1/21 purchase?

Thanks in advance for your help.

Answer
Michael,

Thanks for your question.

The 1/13 purchase was closed in regard to wash sales with the sale on 1/20, so it is not a factor.

Since you sold 77 shares for a loss on 1/28 and repurchased 76 shares on 2/13, the loss on 76 shares is not deductible and attaches to the shares purchased on that date.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA

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I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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