Nobody tell him.

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You don't pay taxes on losses. You pay taxes on gains since you clearly do not have.

You’re clearly doing better than most of us here so there’s that.

The net loss is the only number you really need to know. You can deduct $3,000 against your income and carry the rest over to deduct next year.

Wash sale Loss Disallowed happens when you sell at a loss and buy the same thing again within 30 days (before or after). It means that loss doesn't count for taxes, but if you sell the position later (for more than 30 days) you get the loss back again (because the amount that was disallowed before gets added to the cost basis).

The above states that you bought 2,187,608.44 in securities and sold them for a loss at 2,121,495.69. If you did not have any wash sales, then this would yield a loss of 2,121,495.69 - 2,187,608.44 = -66,112.75 Wash sales are treated as additional profit and therefore decrease the net loss. Thus, the net loss you are eligible to claim is -66.112.75 + 61,492.95 = -4,619.80 Unfortunately, this is above the 3,000 maximum per year that you are allowed to claim. You should be able to carry, the remainder of the loss forward to next year.

As others have stated, a wash sale occurs whenever you sell a security for a loss, but then repurchase it within 30 days. In these cases, the amount of the loss from the sale is applied to your new cost basis and is treated as a profit for tax purposes. For e.g., if you purchased 100 shares of a stock at $5 for $500, sold them for a $200 loss at $3 a share, and repurchased 100 shares at $1 a share for $100 within 30 days of the sale, you will not be able to claim the initial $200 loss. Instead, your cost basis on the 100 shares purchased will be $100 + $200 = $300 or $3 per share. Only once you sell those shares, will you be able to realize the loss based on the adjusted cost basis.

That said, you clearly do a lot of trading. As such, you should probably consider using a broker that allows specific share identification for shares sold. The IRS assume that if you do not specifically identify shares sold, that you are selling them in a FIFO (First In First Out) method. For e.g., if you buy 100 shares at $5, then buy 200 more shares at $2, and sell 200 shares at $3, the IRS will assume that you sold the initial 100 shares bought at $5 with 100 shares bought at $2 which would yield a net profit/loss of -$100. If you were specifically identifying shares sold, you could sell 33 shares from the 100 bought at $5 with 67 shares bought at $2 for a $1 profit. Note: with the FIFO method, you would incur a wash sale if you bought some more shares later.

Regard, find a turnkey tax preparing agency like HnR block. Then listen to their advice. It's likely a magnitude better than what you'd get here.

Nobody in this sub pays taxes…on their trading anyway

0 profit 0 taxes 😂

I was going to say wtf then I remembered where I was

Most of the time they’ll add your wash sale back to the cost basis, unless you sold your loss position at the end of the year and rebought it. Just chill and record your capital loss on your 1040 and deduct 3k this year, carry forward the rest to next year

I think the max you can claim of loss on your investments for taxes is $3k

You only lost $4 k. Could have been much, much worse...write it off and try again.

...now someone post some real loss porn, I'm not getting hard looking at this shit.

The loss on sale (subject to wash sale rules) is added to your cost basis of the subsequent purchase that will trigger the rule into play. It’s to prevent manipulation for offsetting gains in a given year, resulting in a decrease of tax liability. You will recognize the loss on your wash sale when you sell stock without repurchasing in a 30 day window.

You can write off 3k in losses per year. The leftover amount is put onto the next year.

Unprofitable day trader is tautology

Bazinga

Dm

[Expletive deleted]

How....

So you were playing with over $2 million and only managed to be in the red $4.9k?

Am I missing something, I thought you said you started with $30k?

How did you turnover your full portfolio 70 times?

You turned 30k into 2.1 mil and lost it all back? How are you not on your way to the hardware store to get some rope?

4600 is after wash sale or before? Sounds like before, so you my friend have a gain of around $56k. If no other income, you will likely pay maybe 10k in taxes between all. Congrats on a gain!

Find a good tax accountant, it's worth paying for.

>Yes, you will still have to pay taxes on your net loss. The wash sale rule exists to prevent people from artificially inflating their losses in order to reduce their tax liability.

$2000000 and you come here for tax advice??? Fuck off and pay am accountant ... you'll get the answer you need and sleep

Did you really just make a post to claim you have a 2 million $ trading account? No one gives a fuck son, don't try to tell us you have 2 million yet don't know what capital gains/ loss is you idiot