Replies to post #12656 on Mullen Automotive Inc (MULN)

[Arnold25764]

I don't see why IRS does it that way. I think it is an unfair rule...imo

[JusDePomme]

Is this tax capital lost occur only in USA? I don't think it appears happening in. Canada.. Is this policy just put in USA this year? Thanks

[dirtydozen911]

not so........i flip in and out of stuff all the time with no regard......5000 shares of X.., and take a $2 loss.....i buy it back 2 weeks later when its running 5000 of X...and sell it.......if i go to etrade web site for example...it shows the new shares as replacement shares.......it`s not an issue........even if you look at gains and losses before the year ends you`ll see deferred loss.....it means nothing as long as your done with the stock completely before december.
once you examine the 1099 the transaction will appear as disallowed loss, but right next to it the loss will be in the last column as an allowed loss and in parentheses.
can flip and wash till your hearts content....just make sure all positions in the stock are closed out in November.......if a short position, better to close out before the thanksgiving break, as settlement date is applicable to short positions.
i got stuck in it 4 or 5 years ago, because i kept part of a wash and held it into next year.......tax software will still give you the loss next season when you close out the position....and will adjust your cost basis....HAPPY WASHING!!

[cintrix]

That is not exactly true. You can't take the loss from the stock on that sale. What happens is once you buy it back again they add your loss to your new cost basis, so it is actually a delayed loss that you still take. Your cost basis on the new stock you bought is the cost you paid plus the disallowed loss from the last sale.