Wash sale

[Questionguy101]

Suppose you have sold 100 shares of BRK on 3-1-2010 and had a loss of $10,000.

Suppose you have bought back 80 shares of BRK on 3-15-2010.

The sale on 3-1-2010 is a wash sale.

But since you have only bought back 80 shares, does it mean the loss of the 20 shares that you have not bought back is deductible? So $2,000 out of the total $10,000 loss can be claimed?

[veritas]

Ttb

Example: Bill bought 100 shares of Microhuge stock on September 23,
2009, for $5,000. On December 16, 2009, he bought another 50 shares of
Microhuge for $2,750 and on December 23, 2009, he bought another 25
shares of Microhuge stock for $1,125. On January 5, 2010, Bill sold the
100 shares he bought in September for $4,000. He has a $1,000 loss on
the sale. However, because he bought 75 shares of substantially identical
stock within 30 days before the sale, he cannot deduct $750 ($1,000
loss × 75 shares of substantially identical stock ÷ 100 total shares of
stock sold) of the loss. Bill can deduct $250 ($1,000 loss × 25 shares of
not substantially identical stock ÷ 100 total shares of stock sold) of the
loss in 2010. The basis of the 50 shares bought on December 16, 2009,
is increased by $500 ($750 disallowed loss × 50 shares in lot ÷ 75 total
shares). The new basis of those shares is $3,250 ($2,750 + $500). The
basis of the 25 shares bought on December 23, 2009, is increased by
$250 for a new basis of $1,375 ($1,125 + $250).

[JohnH]

The other question should be, how hard would one have to work at it to lose money on BRK?

[veritas]

With a stock broker

The other question should be, how hard would one have to work at it to lose money on BRK?

or online trading it should be relatively easy.

[JohnH]

Oops, you're absolutely correct.
There are plenty of people out there programmed to find the dumbest route to failure.

[Koss]

Wash sale

If I buy gas, and get a car wash at no cost, is this a wash sale?

What if I then sell the gas and keep the car wash?

Does the FMV of the wash reduce the basis of the gas?



BMK