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Hoots : Wash Sale Rule on Overall gain Day 1: I purchased 100 stocks of ABC for 100$. The stock went down and I purchased additional 100 shares for say 80$. Now, my average is 200 shares for 90$. Day 2: The stock went up and I - freshhoot.com

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Wash Sale Rule on Overall gain
Day 1: I purchased 100 stocks of ABC for 100$. The stock went down and I purchased additional 100 shares for say 80$.

Now, my average is 200 shares for 90$.

Day 2: The stock went up and I sold all 200 shares for say 95$.
I made an overall profit of 1000$ on the sale of all 200 shares.
My question is would I be incurred a "wash sale" loss if I try to buy again the shares of ABC for say 90$. For the reason that although I earned a profit but I sold my first 100 shares for a loss of -500$?


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Yes. You sold 100 shares for +,500 and 100 shares for -0. If you buy again within 30 days you will have to top up the cost basis with the 0 loss.

The average is irrelevant.


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