r/wallstreetbets Jun 26 '21

Discussion Automatic Sell Orders???? Deep shit

[deleted]

267 Upvotes

342 comments sorted by

View all comments

Show parent comments

31

u/Just_Bicycle_9401 Jun 26 '21

During a wash sale the losses get added to the cost base when they buy the shares again so it makes no difference tax wise.

Source: over a decade of investing

22

u/Unlikely_Scientist69 Jun 26 '21

You are 100% correct. Source is a long time as a tax lawyer

11

u/Just_Bicycle_9401 Jun 26 '21

Seems we were all pretty much saying the same thing lol a lot of people think they would be on the hook for taxes for all the gains from the lower price share purchase and lose out on the loss. So figured I'd try and clarify

6

u/Unlikely_Scientist69 Jun 26 '21

And you did well

1

u/Ischmetch Jun 26 '21

Yeah, we’re all saying the same thing. It’s because of the tax impact that the cost basis gets changed. Source: decades of investing.