I didn't say it would be "clean"...Your "basically works out that way" comment is indicative of part of the problem. Sure, if I sell all the shares from the 2nd distribution, then I do still get to realize the capital loss in the same tax year, and in the end it "basically works out" like there was no wash sale. But the wash sale tax filing complications are still there (adjusting cost basis and gains for the various transactions involved). Sure, the 1099-B and tax filing software handle this for you, but I'm also the type that doesn't just blindly type in data and trust the end result. I like the do a lot of manual double checking to make sure the end result actually makes sense.
Don't get hung up on "immediately"...
If a "wash sale" is created - the "loss" is offset against the "new" shares. When the "new" shares are sold - and there are no remaining "offending" shares (bought pre-/post- 30 days from the loss) the "wash sale" is basically no longer a wash sale, as there is nothing "left" to offset the "wash" sale. So to your example, if you sell all "offending" shares on the 6th (or later) business day - there was ultimately no "wash" (or it basically works out that way).
But at least you shouldn't have to worry with "wash sales" assuming you sell all the shares in the end. Yes, more paperwork - especially if you do it by hand. But this part should work itself out.Statistics: Posted by SnowBog — Thu Sep 19, 2024 12:13 am — Replies 23 — Views 1146