Ayala Pharmaceuticals Inc (ADXS)

[Traderbx]

Interesting read on 30 day wash sale rule... if you sell ADXS for tax loss and accidentally buy again in less than 30 days...

Negative: IRS Wash rule eliminates your tax loss deduction

Positive: that accidental (or intentional) repurchase "cost-basis" will be treated higher.

Summary:
Wash rule only defers your tax deduction, does not eliminate it altogether.


Source:

https://www.investopedia.com/terms/w/washsalerule.asp

"If the loss is disallowed by the IRS because of the wash-sale rule, the taxpayer has to add the loss to the cost of the new stock, which becomes the cost basis for the new stock. For example, consider the case of an investor who purchased 100 shares of Microsoft for $33, sold the shares at $30, and within 30 days bought 100 shares at $32. In this case, while the loss of $300 would be disallowed by the IRS because of the wash sale rule, it can be added to the $3,200 cost of the new purchase. The new cost basis, therefore, becomes $3,500 for the 100 shares that were purchased the second time, or $35 per share."