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Bill asked in Business & FinanceInvesting · 1 year ago

If I sell a stock for a profit, buy more 1 day later and have a loss, will it be a wash if I wait 31 days before I re-enter the that stock?

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  • 1 year ago

    No, it would not be a wash sale.

    Any time you sell shares for a profit it cannot be a wash sale, so your first sale will never be considered a wash sale.

    The second sale would be a wash sale if you replaced the shares before 31 days after the sale, but you specified you waited 31 days before replacing the shares, so it would not be a wash sale.

    For a comprehensive explanation of the wash sale rule in simple English see

    https://fairmark.com/investment-taxation/capital-g...

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  • nt
    Lv 6
    1 year ago

    You owe taxes on the gain. Then you have a new cost basis by buying more the next day. Waiting 31 days to re-enter does not made sense because you re-entered the next day.

    Wash sales are when you take a loss but by back too soon. I thought anyway.

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  • 1 year ago

    This depends upon the amount profited and lost.

    You need also to take into account fees on the buy / sell transactions.

    Perhaps study the market for at least a year and consider completing the free courses offered by your local stock exchange. This won't guarantee a profit, but will be a factor in improving your potential financial performance.

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