Author Topic: Check My TLH Wash Sale Calculation?  (Read 192 times)

catccc

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Check My TLH Wash Sale Calculation?
« on: March 20, 2020, 09:45:05 AM »
I did an exchange of VTSAX for VFIAX on Monday for tax loss harvesting purposes.  Unfortunately, I didn't think about the 30 days BEFORE component of the wash sale rules.  Oops.

I used Specific ID for the cost basis for my sale.  In the 30 days before the sale, I bought about 16 shares of VTSAX, $1,220 worth, in two different transactions.  Both of these lots were sold as part of the exchange.  Am I correct in thinking that if my total loss on the sale was $3,700, and the two lots that were purchased in the prior 30 days contributed to $300 of that loss, then my allowable loss is $3,400?  (I understand that the max capital loss against ordinary income is $3K, I just overshot it a bit to ensure I didn't need to do another transaction to max my 2020 tax year TLH move, figuring I could carryforward any excess, or use it to offset and ST gains harvested later in the year.)

« Last Edit: March 20, 2020, 09:48:42 AM by catccc »

bacchi

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Re: Check My TLH Wash Sale Calculation?
« Reply #1 on: March 20, 2020, 10:22:43 AM »
You never actually lose any losses under the wash sale rules. They're just delayed by changing the cost basis of the "bought" shares.

With a quick glance, you can claim the full loss with these transactions.