Reply To: Monthly vesting RSUs, sell-to-cover wash sale

Home Fairmark Forum Equity Compensation Monthly vesting RSUs, sell-to-cover wash sale Reply To: Monthly vesting RSUs, sell-to-cover wash sale

#2378
Kaye Thomas
Moderator

The wash sale rule applies when stock is acquired “by purchase or by an exchange on which the entire amount of gain or loss was recognized by law.” Your stock is acquired as compensation rather than by purchase, so the wash sale rule doesn’t apply.

I should note that there’s an old ruling in which the IRS says they think the wash sale rule does apply in this situation. That ruling is merely an opinion that you are free to ignore, and this is a case where it clearly should be ignored. It is contrary to the plain language of the statute and to the best of my knowledge has never been applied to anyone.