Q: Hello,
I do not understand the 60/61 days restriction for superficial loss on a stock sale.
I understand the ‘Do not rebuy’ before 30/31 days AFTER the sale. But what does the 30 days period PRIOR to a sale have to do with it? If I added to a losing position 2 weeks ago, and increased my loss, (thanks LMN!), can I sale now and rebuy in 31 days? Cash account only, no ‘affiliated’ person. Many thanks
I do not understand the 60/61 days restriction for superficial loss on a stock sale.
I understand the ‘Do not rebuy’ before 30/31 days AFTER the sale. But what does the 30 days period PRIOR to a sale have to do with it? If I added to a losing position 2 weeks ago, and increased my loss, (thanks LMN!), can I sale now and rebuy in 31 days? Cash account only, no ‘affiliated’ person. Many thanks
5i Research Answer:
Think of this scenario: An investor owns 1000 shares and wants to take a loss but also wants to...