Wash Sale Rule

[Christian]

A client has sold some stock today December 23 and may wish to buy back the same security after the 30 day wash sale waiting period. He incurred a loss. Counting the date of sale (December 23) I arrive at January 22 as the date he could buy back shares without penalty. In looking at the calendar it's a moot point as the exchange is closed on that Sunday. Would any of you calculate it differently ?

[Lee B]

My understanding is that the rule is "within 30 days, before and after", so

I would add 1 more day to January 23rd.

[Christian]

I am much of the same view just to be on the safe side. I have read you calculate the thirty day period using the date of sale as one of the thirty days but better safe than sorry.

[B. Jani]

I would not advise him when to buy back. Let his broker dealer deal with it. I would just follow what on brokerage statement. Just my thoughts.

[Roberts]

Client had wash sale losses disallowed last year - very clearly on his 1099. Somehow, it became my fault that Fidelity caught that his wife screwed up. Somehow it shocked him that I would believe the 1099 for wash sales but he had no problem with me believing them on dividends and interest. Same client declares every year that it is MY responsibility to do tax returns for his IRA accounts that hold MLPs. I keep explaining it's Fidelity's responsibility but he either can't remember or refuses to remember we've gone through this for 5 years.

Wash Sale is a 61 day blackout window. Trade day is that "1" and then it's 30 days on either side. I'd buy on the 31st day which is January 23rd.

 

[Jack from Ohio]

10 hours ago, Roberts said:

Client had wash sale losses disallowed last year - very clearly on his 1099. Somehow, it became my fault that Fidelity caught that his wife screwed up. Somehow it shocked him that I would believe the 1099 for wash sales but he had no problem with me believing them on dividends and interest. Same client declares every year that it is MY responsibility to do tax returns for his IRA accounts that hold MLPs. I keep explaining it's Fidelity's responsibility but he either can't remember or refuses to remember we've gone through this for 5 years.

Wash Sale is a 61 day blackout window. Trade day is that "1" and then it's 30 days on either side. I'd buy on the 31st day which is January 23rd.

 

Why is he still your client?  He insults your integrity and professionalism when he accuses you the second and every subsequent time.  Send him to H&R.  They can ignore his wash sales and get away with it.