Question about a wash sale
Summary:
- The main problem reported by the user is that a purchase lot is marked as a wash sale, which they dislike for personal reasons.
- One solution discussed is to sell the purchase lot marked as a wash sale and wait until the wash sale period is over before repurchasing, which would prevent the indicator from appearing on new lots in open positions.
- Another solution mentioned is moving the purchase lot with the wash sale indicator to another account, which may remove the “W” marker from the user’s primary account, although the IRS will still track wash sales across all accounts.
Here’s the full thread
A little more than a year ago I intended to purchase some stocks, and accidentally sold some instead. I immediately repurchased the shares and the added shares I’d intended to buy. This purchase lot is now marked as a wash sale. This doesn’t negatively impact me really, but I dislike having the position marked as a wash sale.
Is it possible to just sell this purchase lot and not buy any more of this symbol again for a month to get rid of the wash sale indicator? Even better, is there any point where the wash sale indicator will expire?
Thanks!
Hey again, @Zucce05! Thanks for the question.
It sounds like you’re familiar with the Wash Sale rule, so I won’t get into the definition. If you have a wash sale, it will be indicated in your Positions, however, if you do close that position, and wait until you’re out of the wash sale period to purchase more, it shouldn’t show up again.
Additionally, the wash sale indicator won’t ever “expire” because it will still show on a closed position that had a wash sale. You can view your closed positions by clicking the “Closed Positions” link at the top of the Positions tab. 🟢
Thanks for the quick response, Emilio!
I want to keep the position, but not necessarily the purchase lot that’s marked as a wash sale.
Even if I sell that purchase lot and wait the period before repurchasing, the wash sale indicator will be maintained?
Happy to help!
Yes, the wash sale indicator will be maintained under the closed position that had a wash sale. If you’re totally out of the position for longer than the wash sale window, then repurchase, you shouldn’t see the wash sale indicator on the new lot under “Open Positions.”
Okay, thanks for the information!
Anytime!
I have one follow up question that’s just occurred to me.
If I move just the purchase lot that has the wash sale on it to another account, will that remove it from the position in my primary account?
Allow me to slide in here, @Zucce05.
We track wash sales by account, so moving the affected lot may remove the “W” marker from the position. Keep in mind that the IRS still tracks wash sales across all accounts.
Yes. I’m not trying to avoid the wash sale implications. I just want to get rid of the indicator showing me I’ve got a wash sale for my own personal OCD reasons.
Moving that purchase lot to another account would solve my issue for my main account. Thanks for the info!
Happy to help! Enjoy your Wednesday! 🟢
You too!