I just sold an equity for a loss, and I want to buy it back if things start tu turn around.I was reading some tax rule that said if you sell an equity for a loss, you cannot buy it back within 30 days.Does anyone know anything about that?
The biggest myth in Capital Gains or losses is the 30 day rule.You can buy a stock, take the loss, turn around and buy the same stock again.You take the loss, and when you buy back the same stock, you add the loss to the cost of the new (same stock) purchase. IRS publication 550, page 56.If you don't understand it, call up the IRS at1-800-829-1040.YOU CAN BUY AND SELL THE SAME STOCK ALL YOU WANT BEFORE 30 DAYS, AS LONG AS YOU ADD THE LOSS TO THE COST BASIS OF THE NEXT PURCHASE.
If they catch you doing that do you get a fine?
You can buy it back but you can't offset the loss with any gain (WASH SALE) if bought back before 30 day period is up.
lincolnYou are wrong, wrong, wrong.Read my post.