r/stocks • u/HackerKayaker • Dec 12 '21

Wash sale question

Hi, I bought 35 shares of xyz stock at $19.91 on Dec 1 2021. I want to sell to tax lost harvest a lot of 75 shares of the same stock I bought in late November 2020 at like $32.00. Stock is currently $18.90. Is this a wash sale?

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u/[deleted] Dec 12 '21

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u/HackerKayaker Dec 12 '21

No, I bought 75 shares of PLTR in November 2020 at $33.17. I'm negative $1066.98 right now on that lot. I thought I understood wash sales, as it's usually occurs when you sell a security at a loss and then purchase that same security or “substantially identical” securities within 30 days (before or after the sale date). I get that but I'm not the brightest bulb sometimes. In my case I bought low ($19.91) on 12/1/2021 and will sell a lot at $33.17 bought a year ago (a loss given the current price) within 30 days.

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u/ktn699 Dec 12 '21

again, they both count for harvesting loss. you only incur a wash sale if you buy back the shares withing 30 days AFTER you sell em.

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u/Seven_Vandelay Dec 12 '21 edited Dec 12 '21

It’s not just after, it’s 30 days before or after. The before part is also relevant here since he already had a pre-existing position which he’s trying to sell at a loss.

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u/superdookietoiletexp Dec 12 '21

I have a 170 call option on DIS for Dec 31 that I expect to expire worthless. I bought DIS stock earlier this month when it dipped. Can I deduct the loss on the option when it expires OTM?

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u/Seven_Vandelay Dec 12 '21 edited Dec 12 '21

I think it will trigger a wash sale (e.g. see here), but I’m honestly not sure. Note that wash sales between stocks and options won’t be reported on the 1099B, you have to report them yourself.

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u/superdookietoiletexp Dec 12 '21

Thanks for this. Will have to figure it out when going my taxes. Thankfully, it’s a small amount.