Stock
If I bought 5 shares of stock A on Day 1 for $50. It went down on day 2 to $30, so I bought 5 more shares. If I sell 5 shares at $30 on Day 3 for the shares I purchased on Day1, is this considered a wash sale and illegible for claim tax loss? I am seeing the wash sales was determined sell then buy. I m actually buy then sell. So not sure how it works.
Yes this is a wash sale. Order doesn’t matter.
Order of transactions does not matter. This is a wash sale and you are not allowed to book your loss for tax purposes. You have to hold the second lot for 30 days before you sell and that’s when you select what lot to sell.
It is a wash. Another way to view the rule, if you perform a loss sell, there should not be any buy transaction registered (applies across all brokerage accounts you may hold) 30 days before or after that loss sell.
so if i buy at 50 day 1 then sell at 30 day 2 i can't claim a loss!? (since i bought 30 days before the loss sell)
U never sold for a loss, so no
What? My cost basis for the first 5 shares are $50. So if day 3 I sold for $30, I should have a $20 loss per share right?
You would need to pick which lot you want to sell from. The first lot or second lot or. Mix of both.