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How To Avoid Phantom Income From Wash Sale Loss Adjustments

Por: Forbes Business October 03, 2022

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Wash Sale LossesShutterstock Day and swing traders inevitably trigger many wash sale loss adjustments (WS) amounting to tens or hundreds of thousands of dollars. Take a loss on a security, repurchase it within 30 days (after or before), and that creates a WS loss. A WS reduces the cost basis on the position sold and adds the WS loss to the replacement position’s cost basis. That defers the WS loss, creating phantom taxable income and capital... + full article



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