Hi A71ers,
I'm having trouble wrapping my head around this problem..
Heres the Screenshot of the problem
http://prntscr.com/11c0lx
BUY 100 shares @ $18000 on 4/1/x1
SELL 50 shares @ $7000 on 2/1/x2
BUY 25 Shares @ @3750 on 2/16/x2
To my understanding, wash sale - taxed on gain, not deductible on losses... So the repurchase on 2/16/x2 is a wash sale
There is a 2000 loss on the Sell of the 50 Shares; but once he re-bought 25 shares - shouldn't there be a gain of $250?
The answer is 1000.