Wash sale question...?

Question:

Regarding wash sales, is it true that if I've bought and sold numerous times during the year (some losses some gains) in a particular security...that to avoid all the calculations at the end of the year...I simply need to sell the stock and be out of it for 31 days (and include Dec. 31 in those 31 days) in order to avoid the wash sale rule?

For example, I trade in and out of qqqq during the year..some result in losses and some gains and some are wash sales...can I simply be out of qqqq from, say, Dec. 15 to Jan. 16th and avoid worrying about wash rule sales?

Oh, also, how likely is it that the IRS would ever bother trying to trace all this minutae in my personal account?

Thanks...

I think you have the wrong idea of the wash sale rule.

It's really quite simple:

As long as you sell a stock you own for a loss, and do NOT buy it back for 31 days, you can show the loss on paper for the IRS. You can buy the stock back on the 32nd day and trade it again.

It is possible ( If you are not a good trader ) to have a loss offset all of your trading gains for the year )

Go to IRS.GOV and type in wash sale. You will get the exact wording.

Good luck.

In effect, yes. The losses that you incur are not deductible if you repurchase within 30 days. Those losses are added to the basis of your holdings. These are deductible on the 31st day after sale.

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Wash sale question...?

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