Newbie trader here.
I’m trying to understand the Wash rule. I’m looking to sell shares of the same company stock I acquired on 6/28 and 2/29.
At the current prices, the 6/28 lot would be sold at a gain and the 2/29 lot would be sold at a loss.
If I sell both lots on Monday, 7/29 I think I would be okay on the buying aspect of the Wash rule since 7/29 is 31 days after 6/28 acquisition.
What confuses me is the selling aspect of the Wash rule –
according to TurboTax, “The wash sale rule also applies to a loss from a short sale if you sell substantially identical stock or securities within 30 days before or 30 days after the short sale is complete”.
Does any same stock sell within 30 days of a short sale trip the Wash rule? Since I would be selling both lots in the same transaction, does the loss from the 2/29 lot wash the gain from the 6/28 lot?
