My question is similar to this question except that I would be buying the same stock within the wash-rule period. If I sell a stock at a profit, and then use that money to re-purchase the same stock at a lower price within 30 days, would I still have to report the money I made from the original sale for that tax year?

I've read about the wash rule, and somewhat understand that I can't report losses, but what about gains, is this a double standard? Yes, you would have to report the gain. It is not relevant that you traded the stock previously, you still made a profit on the trade-at-hand. Imagine if for some reason this type of trade were exempt. Investors could follow the short term swings of volatile stocks completely tax-free.

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30 Day Rule of Buying & Selling Stock | Finance - Zacks

Join them; it only takes a minute: Here's how it works: Anybody can ask a question Anybody can answer The best answers are voted up and rise to the top. Do I have to pay a capital gains tax if I rebuy the same stock within 30 days? Tung 1 1 7.

But "within 90 days" could mean within 30 days in which case you cannot report the loss. I saw you update timeframe to 30 days. No loss, no wash. JoeTaxpayer, thank you for your clarification.

I misunderstood wash to mean repurchases that are made within a certain window. I did not realize that you have had to suffered a "loss" from the sale. It's not really a double standard.

The wash rule disallows you from claiming a loss i. If I sell that same stock a year later after having repurchased it within that 30 day window , how would the capital gain be calculated?

Would it be based the original price or the price I had purchased it for the second time around?

A wash sale takes the disallowed loss and adds it to the basis of the new shares. So the loss isn't lost forever just delayed until the new shares are also sold. If we're talking about your original scenario sell with gain and buy at lower price later then the prior position the one you sold at gain has no bearing at all even if you buy back the next minute.

You start from scratch.

Would like your opinion if I should sell and rebuy my shares.

If its a wash sale - then as Joe said. Jesse 1, 1 7 In it, you'll get: The week's top questions and answers Important community announcements Questions that need answers.

Buy and sell stocks all you like, but be prepared to pay - gedyfej.web.fc2.com

The wash sale rule is not applicable if you are talking about a day gap between sale and repurchase. Wash rules are only for losses. The investors that trade volatile stocks very short term are called day traders. MathOverflow Mathematics Cross Validated stats Theoretical Computer Science Physics Chemistry Biology Computer Science Philosophy more 3. Meta Stack Exchange Stack Apps Area 51 Stack Overflow Talent.