Questions for tax experts concerning the "wash" rule.
Suppose one had 1K shares of FGII and early profits of roughly $10K. This was followed by active trading during the downturn (assume all transactions of 1K shares), mostly losses with intermittant profits. Let's say the sells had P/L of -$4K (nov 1),-$2K (nov 16), +$1K (Dec 1), -$2K (Dec 9), +$2K (Dec 11), -$2K (Dec 12), -$2K, (Dec 13), +$1K (Dec.15). Now, let's say the 1K shares were re-purchased on the 15th, and an additional thousand shares purchased today.
(1) Are all of the losses considered "wash sales", or do the profitable trades break the series?
(2) The loss of -4K on Nov 1 is outside of a 30 day range. Is this still a wash sale since it is linked to purchases sooner than 30 days?
(3) Considering the situation of current shares owned at 2K compared with 1K previously. If 1K is sold, does that eliminate any wash sales? ..Or does it only reduce them by 50%.
(4) If all or most of the losses are wash sales, what about the profitable trades of the last 30 days?
Thanks in advance for your help,
Jeff
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