The wash sale provisions apply to which of the following?
I.Jim bought 500 additional shares of Alfa Gamma stock for $4,000 on December 2,2017.Jim owned 2,500 shares after that purchase.On December 26,2017,Jim realizes a loss of $1,500 on the sale of 250 shares of Alfa Gamma stock.
II.Calvin realizes a $8,000 loss on the December 29,2017,sale of Sloan corporate bonds.Each bond has a face value of $1,000.He replaces the Sloan corporate bonds with the same number of Jackson corporate bonds,each with a face value of $1,000 on January 16,2018.The Jackson bonds have a different interest rate and maturity date then the Sloan bonds but have the same bond rating (AAA).

Question

The wash sale provisions apply to which of the following?
I.Jim bought 500 additional shares of Alfa Gamma stock for $4,000 on December 2,2017.Jim owned 2,500 shares after that purchase.On December 26,2017,Jim realizes a loss of $1,500 on the sale of 250 shares of Alfa Gamma stock.
II.Calvin realizes a $8,000 loss on the December 29,2017,sale of Sloan corporate bonds.Each bond has a face value of $1,000.He replaces the Sloan corporate bonds with the same number of Jackson corporate bonds,each with a face value of $1,000 on January 16,2018.The Jackson bonds have a different interest rate and maturity date then the Sloan bonds but have the same bond rating (AAA).
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Quizplus · Accepted Answer

The wash sale provisions only apply to statement I. A wash sale occurs when a taxpayer sells a security at a loss and replaces it with the same or substantially identical security within 30 days before or after the sale. In statement I, Jim sold shares of Alfa Gamma stock at a loss and did not repurchase any shares within the 30-day window, so there is no wash sale. In statement II, Calvin sold Sloan corporate bonds and then purchased different Jackson corporate bonds, so there is no wash sale.

The Wash Sale Provisions Apply to Which of the Following