Ellis sold 889 shares of publicly traded Omer stock (tax basis $161,400) for $125,000 cash on July 2. She paid $136,200 cash to purchase 900 Omer shares on August 8. Compute Ms. Ellis' loss recognized on the July 2 sale and determine her tax basis in the 1,000 shares.

Question

Quizplus · Accepted Answer

The wash sale rule does not apply because Ms. Ellis waited for more than 30 days to repurchase her Omer stock.

Ellis Sold 889 Shares of Publicly Traded Omer Stock (Tax