🚀 Learn How To Slash $30K Off Your Taxes Without Being A “Tax Expert” Or Spending Money On An Expensive CPA! Free Strategy Session: www.thetaxonomics.com/strategy 🏦 BEST BROKER FOR ACTIVE DAY TRADING 🚀🌚💸 www.interactivebrokers.com/mkt/?src=brianriveray&url=%2Fen%2Findex.php%3Ff%3D1338 ⚡ Trader Fyles: Generate your trader specific tax forms! (Coming Feb 2022) www.thetaxonomics.com/trader-fyles-inc ⭐Schedule a Trader Tax CPA Consultation! (Available May - Dec Only) calendly.com/tradertaxcpa/

This is the first video about wash sales that states that wash sales are only relevant in December and January. Confirming what I was told decades ago. Leads me to believe you are one of the few that knowledgeble in trader tax.

Wash sale is simple, here are key points: 1. Only tagged for making losses. 2. If sold at loss, don't make another trade for same or similar stock for next 31 days to be able to claim the loss against your gains or tax write off. If you did then that's a wash sale position. The good thing is if you close this wash sale position by year end, either at profit or loss, You are fine. ..and that's wash sale in a nutshell!

Wish you would do another one of these but more geared towards an options trader. There is a lot of confusion out there about how brokerages report options trades with different CUSIP numbers and how that interacts with wash sale rules.

If Fidelity shows overall gain for the wash sales as a day trader, does it matter ? IT seems to me that as long as you're not having big losses and don't care about small losses and being profitable overall, one shouldn't worry about wash trades. Only exception towards year end, close out the positions. Correct?

Thank you for this video 👍

Thanks for providing this video! It provided a very clear an concise understanding of the Wash Sale Rule that I will be applied come tax season.

Great content Brian I just want to be clear on a few things. The way you describe, a wash sale/disallowed losses really only have a significant impact if you carry positions into the new year and/or re-enter a similar position within 31 days starting in December. Otherwise the loss will just get tacked onto the cost basis of the average day trader that is subject to wash sale rules. Trades made throughout the year up until December really have no impact as long as you stay flat into the new year ( no positions on) and stay away from any tickers that you took major losses on in the month of December. Otherwise the average day trader should have really no worry about disallowed losses/wash sale rule, am I understanding correctly?

2 questions. 1: Is a leveraged etf like TQQQ substantially identical to QQQ? 2: In an IRA if you're in a broad market index like SPY and you exit when it crosses below 200 day SMA and buy when it crosses above the 200, if one move incurs a loss, do you have to wait 31 days to re enter?

This is the very clear video I ever watched about wash sale rule. Many people here youtube are describing wrongly.

Just found out about this rule and have been doing this for awhile now. Down cost averaging. Selling a little then using that to buy back in immediately. This rule makes me want to go back to crypto not even going to lie. See how it plays out I guess.

Once I start making money I'll watch this video. It saved in a favorites folder!

Awesome channel. You’re very informative and explain things so I can understand. Question: I bought a covered call on XYZ stock on Jan 6. I had 4000 shares It was assigned on Feb 2, 9, 10 and 11th, 1000 shares on each date. I don’t plan on buying this stock in the future. How many shares will be tagged as a wash sale? Thank you so much for taking your time to answer my question. Glory to Ukraine!

This used to be me until Brian eased my concerns! Best CPA out there 👍

Great info, thank you! Look forward to viewing more of your content.

Thank you for the info, this is very helpful. I have a quick question. I have a TON of wash sales and will be closing all positions in December that have wash sales attached. Does it matter if I traded different sized lots each time if I close out everything before the end of the year and don’t buy back for 31 days? For example buy 1000 shares, sell all at a loss then buy back 500 shares of the same stock then I close out position entirely in December. Do the other 500 shares that I did not replace get deferred or does simply not buying back the stock at all throughout January allow me to eliminate all wash sales regardless of lot sizes?

Talked with E*trade if you trade with the same stock. If you take a lose it adjusts your cost basis What’s the big deal?

If I sell Stock A at a loss (completely exit the position), can I use the proceeds to buy Stock B (same sector as Stock A) within the same hour? Are there any repercussions to this sort of trade? Thanks

I know he trying help us but the way he explains is so confusing. The only month that we have to worry wash sale losses is in the month of December and January. You can trade any stock until the month of December 31, 2021. But you must closed all of your positions by year end(December 31) , and do not trade all of those stocks for for 31 days. Me personally I would just track all of the stocks that I trade in the month of December and I would just completely avoid all of those stocks in next month January.

I got out of my position because of the fear of the wash sale on my one and only stock. Which is unfortunately Nvidia. I've tried selling at a gain to offset what I must have done. And when I go to buy in again It shows like a negative balance and the cost basis is all messed up. So I guess I'll just have to sit out for a while until it clears out. Which I think is what the 60 days?? Just sucks.

Hello Brian, I had wash sale on HUMBL, which is 30k. Watching ur education, I realize that I should sell and wait for 30 day? What do u say?

I would like to see you do a forex video on reporting income generated from prop firms. TIA

Great video as always and going to definitely check out your product! I had a question inspired from the Dec example you gave - if on 12/7 I triggered a wash sale by repurchasing 100 shares of a stock I had sold at a loss on 12/3, closed out the entire position today at a loss (12/15), then avoided trading this ticker for 31 days… can I still count the loss in 2021?

Does Wash Sale applies to IRA accounts too?

Hope to get a consultation with your firm in 2022! Can you do a video on your daytrading setup?

I re-bought it two days ago. How long do I have to wait to close the position or re-sell it later on? What about if the difference was a few cents?

Bro that video was really helpful thank you so much you are doing a great job I like your work but that was a very informative and I really really need to watch that video and he help me all my questions that I was looking for thank you so much you're the best God bless you

I still don't understand how the trader had to pay 800k in taxes..if I have 11k in capital gains and 25000 in disallowed losses won't I only have taxes to pay on 11k and the 25k in disallowed losses just won't count against my gains?

does the wash sale rule apply to spy futures? or futures on other stocks?

What happens when you place multi leg options trades? Say they involve a put sell/ a put buy/ a call sell /and a call buy. Gains are $10,000 and losses are $9000. If these are all closed on the same day are you taxed on the $1000 difference or are you taxed on the entire $10000?

what if you’re playing spy options with different expiration dates? So you lose $100 in the 2/17 expiration date, but you buy another expiration date, say 2/19, in the same stock and gain $100 ? Does wash rule apply?

If you buy a new share won't the wash loss just roll over to the new share?

Does wash sales rules the same if you have trader status under a LLC or is any loss a loss, that always confuses me, thanks for any help..

How you get 800,000 tax bill on 1,4 million short term capital gain? The explanation DOES NOT explain why the guy losses disappeared but the gains stayed. He bought , then sold, his loss supposed to go to next buy and when he sold that to balance out. It did not. The loss doesn't disappear the cost base next goes up should balance and not just disappear. In the guy case disappeared make no sense.

Let's say a day trader sells a stock for a $1000 loss, trades it again the next day and therefore triggers a $1000 wash sale. Why not repurchase 1 share of that stock, wait 31 days, then sell it? Wouldn't that likely lead to an allowable loss of near $1000?

Wish I saw this a few months ago. I have a lot of wash sales this year and I would re buy it in my Roth.🤦‍♂️

so if i don't do a wash sale i can have more than 3k recognizable loss? how is the 3k limit applied to investments not applied in this case if this person is not a day trader.

So just to be sure. If one decides to sit out December, then one can simply report the total proceeds minus the total cost basis as it appears in the 1099, ignoring all wash sale flags, and be done, right? That way by November 30, the account is flat and there is no possibility of running into issues.

What if you took a loss in a Roth IRA account and then you bought the same stock in a non IRA account within 31 days do you also permanently lose the capital loss ?

If a stock is sold for a gain, price drops within days, can you buy back, and repeat this process with no penalties? In other words buy, sell, buy sell over and over the same stock for profit

Thank you for that video also have a question if i am day trading options making 10 trading a day and make profit in the same time some the trades i close them in losses but most of them profit in general i make good money should i go with mark to market account

Can you elaborate on that Robinhood trader that got that 800k tax bill? I just don't understand how that could happen when he only made 45k trading.

To make sure I understand. A day trader that accumulates losses throughout the year should be okay if he/she closes all the positions by december and dont buy again for 31 days?

On an H1B visa can I apply for trader tax status? I only trade 2 hrs in the morning and 2 hour at closing and therefore it does not affect on my actual H1B work.

i have a question regarding taxes. lets say i sold a stock for $3000 loss. i know there is a $3000 limit for losses you can show for taxes. Lets say then i start day trading. I buy some apple stock. I made 10 trade on a single day. Out of that 10 trades i made $5000 from 7 trades and lost $1000 on my last 3 trades. so my net gain is $4000. this is all in one single day. So my question is when it comes to taxes can i subtract the $1000 loss from my total gain of $5000 and pay tax only for $4000 or do i have to pay tax for $5000 since i already sold my stock for $3000 loss i reached the limit.

i have a question about the wash sale. I bought NVDA option three times in this month. I made money on the first two times and on the last time I lost 3000$ . if I wait for 31 days would the 3000$ still consider as wash sale? So I bought option for 03/5/2024 for 30.0 and sold it for 50.0 then i bought option 03/15/2023 for 40.6 and sold it for 46.6 then i bough another option 03/25/2024 for 23.7 and now is 6.75 so if i sale that option and then do not buy for 35 days the same stock will that still wash sale? thank you

Hey Brian! Awesome video, quick question. Does it matter to the IRS how much in dollar value, that a trader moves in the year. For example lets say a trader moved $30,000,000 in stock based on Proceeds/Cost (because of leverage ofcourse), but loses $100k. Does the Proceeds/Cost have any significance? Or is it only Loss that matters. Thanks 🙏🏽

Thanks for doing this Brian. Can you get wash sales trading options? Say you bot a TSLA call option strike $950 expiring 04/14/2022 and cut loss the next day. Then trade TSLA call option using a $955 expiring 04/14/2022 on same day or next day. Will that be a wash sale?

Awesome video but I don’t understand how the Robin Hood guy had a 800k tax lability if he only booked a 45k profit. He didn’t realize that many gains

My is on question Calendar Spreads... Short the front month contract and long the back month sell entire spread for a profit taxes should only apply to the net profit correct? Next question same ballpark... What if you cost averaging into the same calendar spread for a week especially 4 calendar spreads cost averaged into and decide to once you have a handsome profit selling the entire position or in pieces for a profit. How would that work?

glad i found your channel it is awsome

I bought nvidia and sold at a lost. Then bought it back 1 week later where they added my lost to my cost basis and then sold again about a week after. I am now waiting 30 days. After those 30 days passed (in june 1st) if i buy nvidia again will they still add the lost to my cost basis or not anymore? What if I make sure to sell nvidia by November this year. Will I be able to claim that lost at the of the year?

Questions (from your video) 1. You said Dec and Jan are most important months. If I buy TESLA in January, sell it at a loss in March. then buy it again in August because it has come down, can I claim my first loss or I have to close the position at the end of the year to claim that loss? 2. I can't claim the loss in the above example, would that be a case deferred loss for the next year? 3. I buy APPLE in august, sell in on 30 Nov at a loss but the prices plummets every further and I buy it again on 15 Dec, would my loss in this case be a deferred loss for the next year? Thanks for explaining this.

question for you so lets say i make $170k in profit and i buy back the stock a few times and now i am down $150k from that $170k profit but still hold the stock. I also show -192k wash sales disallowance. Thoughts? I bought the same stock and sold it a few times.

Hello Brian, great videos from you explaining thoroughly about the wash sale rule. Unfortunately, my father was unaware of the rule and accumulated huge amount of wash sale loss, which is deferred and he will have to pay a huge tax bill based on the net gain for this year. So back to your story about your client with wash sale loss, did he end up paying that tax bill? Is there anyway to fix the problem once the 1099s are already issued?

So if I sell at a loss then repurchase the same stock the next day, I have to pay tax on the Loss? I'm having a hard time wrapping my head around how this would increase one's tax bill. I understand not being able to write it off. I just don't understand why I would pay tax on money that was already taxed. There is also another CPA here on KZfaq saying that it does not raise your cost basis. So now I'm getting confused.

Brian, very interesting videos,! I unfortunately had some wash sales in 2020 so, I need to recognize the loss in 2021 taxes. Can you explain briefly, how do I get to deduct the loss in the next tax year,? Thanks.

if I have Net loss -51,000 and a wash sale loss dissallowed of 228,000 what does this mean exactly?

B.S Should be able TRADE Mid January to mid December NO limit trading same stocks Government corruption 11 months

1 thing I havent found covered yet is - I have periodically added to a position at different prices and then the security drops. I want to sell some of the shares but not all. After selling some of the position this has triggered a wash sale with the remaining shares. How is this avoided? Do I sell the shares acquired at a higher price or a lower price?

As always, great content Brian

Hi Brian, If I'm American citizen, but also another country citizen and I live my whole life in this country, so my daytrading tax is according to the U.S rules or the other country rules?

Hey Brian, can I avoid wash by selling specific lots with a profit ?

Two questions I am not finding an answer to. 1. Can we trust the 1099-B from the broker to report the right gains and deferrals? Like if I sold Dec 5th and waited until Jan 10th to buy it back, will the broker know to not add the loss to the new shares on that years 1099-b? 2. If someone traded heavily around a core position with mostly profitable trades, does the wash sale rule really matter? Because each replacement stock takes the loss deferral into account and that replacement stock sold then either defers more but more often reduces the next gain. So could a person conceivably never close out the entire position of a single company but as long as they mostly made profitable trades, the loss would not accumulate? I very much want to know this answer because I'd hate to sit out of a stock for 31 days that I do so well trading in over years.

It's still not clear about the implication of wash sales between February to November. Also, what kind of problems and pit falls are there regarding switching to 475f mark to market? What surprises to know about?

Thanks for the refresher video, Brian. I'm also going to look into your Trader Fyles software. My question pertains to day trading: I do lots of scalping and take small losses on occasion but am net profitable on any ticker that I routinely trade. I have not been trading some of these tickers in December as I am concerned that all of my small losses from throughout the year (say I trade a ticker from January 2021 to December 2021) would be carried forward on the cost basis if I trade them in December and into January 2022 - such that my total gains would be taxed but none of my losses realized (as they'd be carried forward to 2022). Is that accurate or a misunderstanding of the rule? Thanks a lot for helping to clarify this - it's been gnawing at me all year!

@BrianRiveraCPA Does selling a covered call for your position considered a wash sell? let's suppose I have 10k shares of a stock and I sell 100 weekly OTM-covered calls contracts for the month of January and none of them get assigned and they all expired worthless and I collect the premium. does it flag wash sell?

Hi I have a question if you buy an option at different expiration date or price is that consider wash sale

Hi Brian, hello did i have a wash sale when i sold a 2 option contract at a loss of $76 dollars then i bought the same security in my roth IRA account before the 30 day period? Also i bought the securities in 2 different brokerages because the Roth IRA account is in a different broker. And please advice of what I need to do... Thank you!

Hey Brian thanks for the videos!! Quick question.. I bought/sold apple today about 5 times and lost $400 at the end of the day. If i dont trade Apple for 30 days does this mean that i could deduct this $400 at the end of the year?

@BrianRiveraCPA I thought I should not buy the same position 30 days before or after selling the security (61 days), but you are saying only just 31 days after I sold the position in the month of December. let's suppose I carry a big wash sale throughout the year and the month of December by selling in and out of the position, but I wait 31 days in the month of January before buying it back, would this flag wash sale? thanks again for your help!

Thanks

Hi, thanks for the video. Do wash sales apply for FOREX market? Can you explain it in a video , please? Thanks

I totally screwed myself. Sold at a wash on the 3rd and bought back in in the 6th. Screwed my cost basis so far I am already at a loss just by triggering a new wash sale. My assumption is I sell again and buy back it will trigger yet again another wash, correct.

Hi Brian, I'm curious to know how a Trader (only source of income) can get a mortagage to buy a House? To be more specific, what are the minimum requirements and documents need it?

What if the Wash Sale position was then closed out for a profit? What happens to the WS position then & what would the consequence be if I repurchased the same stock within the 30 days? Would the new positions opened also be considered implications of a WS? Than you.

Is it possible to still qualify for active trader status if you started trading mid-year as an LLC?

great video, so if i sold 551 shares at a loss, i bought one 1 share the following week. i assume this will be disallowed?

just wonder if the wash sales are split in lots and therefore only certain lots will be deffered for next tax year or if you sell only one stock in January, all lots(all wash sales) will be deffered to the next tax year

Would IVV and VTI be a wash sale? One is a total stock market index with vanguard and the other is S&P 500 with iShares. Seems safe no?

I have a question. I have 200k was sales in 2021 from trading SPY. The last trade was at the end of December. Then I repurchased and sold only few stocks from SPY at the begining of January that resulted in $1000 gain/loss. So my question is is the whole 200k wash sales moved to the new year tax report or only 1000 and I can still claim $199 for the previous year.

Not sure if you check this at all anymore. But I have some confusion that in days of researching, reading forums, and watching videos there seems to be nobody asking this. If I trade the same stock thousands of times a year, with 500,000 wash sales disallowed on it. If I am profitable on that ticker symbol at the end of the year, do the wash sales matter at all for it? Example: TSLA, 50 million shares bought, 50 million shares sold and closed out on Dec 31st. Wash sales 500,000$. TSLA Net Gain/loss end of year +1000$ . Maybe I was up 20k, down 50k, up 30k, down 20k, etc. Does it matter at all at the end of the year if I ended up +1000? Lets say I then rebuy into TSLA Jan 1st, would that effect it? Second Example: Stock XYZ +200 Stock XYZ -200 Stock XYZ +200 Stock XYZ -200 Net Gain end of year 0$ 2021 2022 Jan 1st Stock XYZ +200 Stock XYZ -200 Due to wash sale do I then owe taxes on +400$ for 2021 even though I ended up at 0$ And then 2022 even though technically at 0$ would now currently be at -400$ due to the deferred wash sale losses? Is any of this accurate or am I way off? Thanks!

Hey Brian, so the entire 2022 year I’ve made 12k realized in day trading, probably put on hundreds of trades with few tickers. Without electing 475(F) do I just get taxed on the 12k I’ve made?

Hi Brian do you a video about the wash rule and options? Since options could be very different. For example, let's say I trade SPY options. There is multiple different strike prices, 3 dte per week, and C/P. How do I know if I will Tigger the wash rule. Ty in advance.

So the wash sale is only a concern if you’re a day trading long holder with the same ticker?.

Thanks for the great video. So, I have started actively trading shares and selling calls on TQQQ and SQQQ. My strategy is to start each week with the same dollar value of underlying in each, sells calls on each to expire Friday, and then rebalance back to equal amounts of underlying in after hours on Friday. This way I collect call premiums on both, and the sum total invested in both underlyings remains relatively flat throughout the week. However, I have already generated multiple wash sales in both underlyings doing this. So if I just end all options trading on Friday 11/25 and sell all shares of both underlyings in aftermarket that day, and then not trade any more in these two securities for the rest of the year, then all my wash sales should be cleared/forgiven for the 2022 tax year? Thanks!

I want to setup a business entity for day trading and it needs to be exempt from the wash rule. Can I do this without being personally classified as a day-trader? Much of the buying and selling will be automated. I also have a separate full time job, do I need to pay payroll taxes on my trading business too?

Hi Brian, I am in wash sale nightmare because I didn’t know about wash sale rule applying to day trading account and there is such thing as mark to market selection. So, now my loss has carried forward to this year and showing phantom number of gain for 2021 which is not true. Can mis filing of one document screw me up and wipe out my hard earned years of savings? Can good CPA fix this? What should I do?

Hello Brian. Do you do taxes for trading accounts? Thank you.

What if i Sold all my AMC and immediately bought TSLA, did it trigger the wash sale?

Hi Brian, great video. I got in and completely out of GME in Feb 2021, never touched it again. But Etrade still disallows that loss as of Mar 2022. Any idea?

Best presentation.

What does it mean by 30 days before and 30 days after when it comes to wash sale?? I keep hearing ppl say wait 62 days and not 31 days??

I was told you cant get M2M unless your trading income is greater than your other income, is that true?

So if you loose money in an option, dont buy anymore in that stock for at least 30 days?

I'm glad you post this video. I closed out call options 3 weeks ago at a lost but still have shares and I have one more week left before I average down on my shares. So this means i need to close out my shares in order for if to be recognized but do I have to wait longer than the one week now I have left from when I closed out the options ? Thank you

If i sell put option and buy to close the position ( with a loss ) and Roll over to a further date and different price ..is that a wash sell ? Thanks

I started trading a year ago and didn't know about wash sales. Last month, January 21st Tesla tanked and I was down 25,000 and was trading on margin on Robinhood. I was afraid Robinhood was going to sell my stocks and before it continued tanking I sold my Tesla shares, returned all the margin to Robinhood and ended up losing all my gains from the year. Because I didn't know about wash sales I bought Tesla again but I sold them about 2 weeks ago. I got my 1099 and the loss has been disallowed. Does it mean I have to pay taxes even if lost all my gains? Also, those transactions were made now in 2022. Why are they showing on the 1099 for 2021? Thanks in advance!

I first bought this stock in August of 2021 and have been buying more of the same stock throughout 2022. My last purchase was on October 7, 2022. My total losses for this time frame is -$6k. My question is if I sell my whole position on this stock and not buy it back for 31 days will I be able to qualify for the tax loss even though I’ve held this stock since last year? Thank you in advance. Newbie over here lol

What about Gains? If you sell a stock for a Capital gain, can you turn around and re-buy the stock without being flagged as a wash sale?