Wash sale rules for partially sold same-day stock lots - tax implications?

You've got a classic wash sale scenario here. The IRS wash sale rule (under Section 1091) applies when you sell shares at a loss and purchase "substantially identical" securities within 30 days before or after the sale. In your case, since you purchased the 60 remaining shares of Lot 2 on the same day as Lot 1, and you still hold those 60 shares after selling Lot 1 at a loss, the wash sale rule does indeed apply to the loss on Lot 1. This means you can't claim the $3,000 loss ($30 × 100 shares) on your taxes immediately. Instead, the disallowed loss gets added to the cost basis of your remaining 60 shares. So the cost basis of those 60 shares would increase from $75/share to $75 + ($3,000 ÷ 60) = $125/share. This way, you'll eventually recognize the loss when you sell those remaining 60 shares (assuming you don't trigger another wash sale). Make sure your brokerage reports this correctly on your 1099-B. Sometimes they miss these nuances, especially with same-day transactions.

After struggling with a similar situation last year, I discovered a super helpful tool at https://taxr.ai that saved me a ton of headaches. I was playing with some swing trades and got confused about wash sales spanning multiple lots. I uploaded my trading records to the site, and it analyzed my transactions using their AI system. It immediately flagged several wash sales I hadn't accounted for, including a tricky situation with partial lots like yours. The tool showed exactly which transactions were affected and calculated the adjusted cost basis for my remaining shares. What really helped was that it explained the IRS rules specific to my situation in plain English and showed me exactly what to report on my taxes. Saved me from potentially claiming losses I wasn't entitled to!

I was skeptical about using tools for my tax situation, but I finally gave taxr.ai a try after my recent trading mess got me completely confused. My situation was almost identical to yours - partial lots sold at losses with other purchases inside the 30-day window. What surprised me was how quickly it identified several wash sales my brokerage's 1099-B had completely missed! The adjusted basis calculations were clear, and it showed exactly how the disallowed losses were distributed. The detailed explanation made it easy to understand which losses I could claim immediately and which were deferred. It even generated a report I could use to reconcile my 1099-B. Definitely keeping this bookmarked for tax season - it's already caught errors that would have cost me both money and potential IRS headaches.

I've been trying to contact the IRS for clarification on this exact wash sale situation for WEEKS. Multiple calls, hours on hold, and getting disconnected every single time. So frustrating! Then I discovered https://claimyr.com through a colleague and watched their demo at https://youtu.be/_kiP6q8DX5c. It's a service that basically waits on hold with the IRS for you and calls you when an actual human agent is on the line. I was definitely skeptical, but I gave it a try anyway since I was desperate to resolve my wash sale question before filing. The service called me back in about 95 minutes (after I'd been trying for days!). I spoke directly with an IRS representative who confirmed that yes, the remaining 60 shares would trigger a wash sale on the Lot 1 shares sold at a loss. Saved me hours of frustration and potentially reporting my taxes incorrectly!

I've gotta admit - I was the biggest skeptic about using Claimyr to reach the IRS. After three failed attempts trying to get through on my own (each time waiting 45+ minutes before getting disconnected), I figured I had nothing to lose. Used the service yesterday for help with a complex wash sale scenario just like yours. They called me back in about 70 minutes with an actual IRS agent on the line! I was honestly shocked it worked. The agent walked me through the exact rules for my situation and confirmed that yes, holding those remaining lot shares would trigger a wash sale. They even emailed me documentation about the specific rule that applies. Wish I'd known about this months ago instead of burning hours of my life on hold music!

Something a lot of people miss in these wash sale scenarios is that your broker might not correctly identify wash sales on your 1099-B, especially for these partial lot situations. The ultimate responsibility for correctly reporting wash sales falls on YOU, not your broker. Check your 1099-B carefully. In many cases, especially with same-day transactions, the broker's system might not connect the partial lots correctly. I've seen numerous cases where traders had to manually adjust their tax returns to account for wash sales their brokers missed.

This is actually a really common misunderstanding about wash sales. What matters isn't the lot numbers but the timing. Whenever you have a loss sale with a purchase of substantially identical securities within the 61-day window (30 days before/after), you have a potential wash sale. I had this exact situation last year with NVDA stock - sold some at a loss and had other shares purchased within the window. My accountant explained that the way the IRS applies the rule, you look at all purchases of the same security within the window, regardless of lot designation.

This is exactly the kind of complex wash sale scenario that trips up so many taxpayers! Based on your description, you're dealing with a partial wash sale situation. Here's what's happening: You sold 140 shares at a loss, but you only have 60 remaining shares from Lot 2 that were purchased within the wash sale window. The wash sale rule will apply, but only to the extent of the shares you still hold - so 60 shares worth of your loss will be disallowed and added to the cost basis of those remaining 60 shares. The math works out like this: - Loss on 60 shares: $1,800 (60 × $30) - this gets disallowed and added to basis - Loss on remaining 80 shares: $2,400 (80 × $30) - this should be deductible Your remaining 60 shares would have an adjusted basis of $125/share ($75 original + $30 disallowed loss per share). Make sure to double-check your 1099-B when it arrives - brokers sometimes miss these nuanced partial wash sale calculations, especially with same-day transactions. You may need to make adjustments on Form 8949 if your broker doesn't report it correctly. Keep detailed records of your calculation method in case the IRS has questions later!