Replies to post #116562 on 1812 Brewing Company Inc (KEGS)

[az_maverick]

General Rule

In general you have a wash sale if you sell stock at a loss, and buy substantially identical securities within 30 days before or after the sale.

Example: On March 31 you sell 100 shares of XYZ at a loss. On April 10 you buy 100 shares of XYZ. The sale on March 31 is a wash sale.

The wash sale period for any sale at a loss consists of 61 days: the day of the sale, the 30 days before the sale and the 30 days after the sale. (These are calendar days, not trading days. Count carefully!) If you want to claim your loss as a deduction, you need to avoid purchasing the same stock during the wash sale period. For a sale on March 31, the wash sale period includes all of March and April.


The wash sale rule actually has three consequences:

* You are not allowed to claim the loss on your sale.
* Your disallowed loss is added to the basis of the replacement stock.
* Your holding period for the replacement stock includes the holding period of the stock you sold.