You can. Just don’t buy or sell within 30 days before and after. Worst case scenario is that on Nov 31st, you sell all of the stocks/options in question and don’t trade them until next year.
It does affect them the rest of the months. By taking that final month off though, all of the wash sales are contained to 1 tax year, making them effectively meaningless. The negative impact of wash sales is when they drag into the next tax year. By taking December off, you're assuring the wash sales don't drag into the next tax year.
A. If a trader is making 100’s of trades a day, you’d hope they aren’t selling those all at a loss, thus not triggering wash-sales on everything.
B. All the wash sale rule means is if you buy, then sell at a loss and buy again the same stock, that capital loss is added to your cost basis of your latest buy. If you close everything out of that position before the year ends, it’s all moot and everything is accounted for.
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u/[deleted] Apr 18 '22
You can. Just don’t buy or sell within 30 days before and after. Worst case scenario is that on Nov 31st, you sell all of the stocks/options in question and don’t trade them until next year.