I was reading some wash sale information and I have a question about one particular scenario and if it can be written off or not.
Day 1: Purchase 100 shares of X for $1000.
Day 2: Sell 100 shares of X for $2000 (Stock went up!).
Day 3: Buy 200 shares of X for $2000 (Stock went down, able to buy more shares!).
Day 4: Sell 200 shares of X for $500 (Stock kept on going down, bummer).
I would think that the whole thing would be a capital loss of $500 and the $500 could be written off on your taxes. Since the stock was never purchased again after day 4 it wouldn't be considered a wash?
Day 1: Purchase 100 shares of X for $1000.
Day 2: Sell 100 shares of X for $2000 (Stock went up!).
Day 3: Buy 200 shares of X for $2000 (Stock went down, able to buy more shares!).
Day 4: Sell 200 shares of X for $500 (Stock kept on going down, bummer).
I would think that the whole thing would be a capital loss of $500 and the $500 could be written off on your taxes. Since the stock was never purchased again after day 4 it wouldn't be considered a wash?




