Another (small) “is this a wash sale” question

Home Fairmark Forum Taxation of Investments Another (small) “is this a wash sale” question

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  • #71032
    sselm
    Participant

    Is this a wash sale? (No other shares owned.)

    March 1: buy 1 share XYZ for $10
    March 2: buy 1 share XYZ for $10
    March 3: sell the March 2 share (with specific ID) for $11
    March 4: sell the March 1 share for $9, a loss

    I realize that even if it were a wash sale there’d be no economic consequence, since all positions are closed out by the end. But could the IRS consider it technically a wash sale? Can the March 2 shares be considered “replacement shares” even though they’re sold before the loss is incurred?

    Thanks

    #71033
    Kaye Thomas
    Moderator

    No, not a wash sale. They can’t be replacement shares if they weren’t owned at the time of the loss.

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