Selling Stock At A Loss And Buying Back at Buying

Selling Stock At A Loss And Buying Back. If the 10 shares you sold were sold at a loss, then buying back those 10 shares immediately after, results in a wash sale, in which case there is no tax consequence. Buying them back before january is even smarter.

If you do have a wash sale, then the total time of the two lots counts toward long term (but the days you were out of the stock don't count). If you buy back 31 days later, it is not a wash sale. In other words, buying and selling stock within 30 days.

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To have a loss from the sale of stock qualify as a tax write off, the investor must wait at least 30 days before repurchasing the shares. This removes some of the urgency to buy or sell investments right away to take advantage of the tax loss selling technique. But a good sale price is just as important as a good buy price — and sometimes, the right time to sell for a. Because the sale and the purchase effectively cancel each other out the result is there is no change in exposure to the asset by the owner.