UNder the wash sale rule:
Example: Some time ago you bought 80 shares of XYZ at $50. The stock has declined to $30, and you sell it to take the loss deduction. But then you see some good news on XYZ and buy it back for $32, less than 31 days after the sale.
You can't deduct your loss of $20 per share. But you add $20 per share to the basis of your replacement shares. Those shares have a basis of $52 per share: the $32 you paid, plus the $20 wash sale adjustment. In other words, you're treated as if you bought the shares for $52. If you end up selling them for $55, you'll only report $3 per share of gain. And if you sell them for $32 (the same price you paid to buy them), you'll report a loss of $20 per share.
So basically it is a wash ... If I buy at .25 and sell at .125 then I have a 50% loss. I wait and buy back at .08 and sell at .25.
I do not have a 0% loss or 0% gain I have:
B 10,000 @ .25 = $2,500/00 ...
S 10,000 @ 12.5 = $1,250.00 ... -$1,250.00 Loss
B 20,000 @ .08 = $1,600.00
S 20,000 @ .25 = $5,000.00 ... 3,400.00 Gain
3,400 - 1,250.00 = $2,150.00 Gain (regardless of when I bought it)
Now the wash sell is only if you hold the security and you wish to take a loss from a previous sell. As long as you hold the security then you are right.
If you are in and out in the same physical year then you are fine. Only in a loss scenario.
Let the accountants take care of this .
GB
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