Wash sale rule applicable?

[sharpie510]

Hi,

I have a scenario where I could not find a working example.

Say, the following were to occur:

1. I purchase 1000 shares of stock XYZ on Feb 10, 2012 for $100/share.
2. I purchase 100 shares of stock XYZ on Feb 10, 2014 for $200/share.
3. I sell 100 shares of stock XYZ on Feb 20, 2014 for $150/share, specifying the shares purchased in #2 as the specific lot to sell.

Question: is this a wash sale? Am I not allowed to claim the loss of $5000? If not, does this mean than I increase the cost basis of 100 shares of the 1000 that I purchased in #1 so that 100 of those shares now have a cost basis of $150/share?

I only ask because most of the examples for a wash sales are where you buy low, sell high, then buy back low. There I can understand why the wash sale rules apply. However, in the example I provided above, I would buy low, buy high, and then sell lower than #2 but higher than #1.

I found this definition for the wash sale rule:
"The wash sale rule prevents you from claiming a loss on a sale of stock if you buy replacement stock within 30 days before or after the sale."

Since I did not purchase replacement stock within 30 days before or after the sale, does the wash sale rule not apply?

Thanks for your input.

[disneysteve]

The wash sale rule only applies if you rebuy the same stock within 30 days. In your scenario, there is no repurchase so wash sale wouldn't apply.

[moneysma]

DisneySteve has it right - there was no repurchase of shares, so no wash sale. If you were to buy more shares of XYZ within those 30 days, then you would have a wash sale. But as for now, no wash sale.

[feh]

Hi,

I have a scenario where I could not find a working example.

Say, the following were to occur:

1. I purchase 1000 shares of stock XYZ on Feb 10, 2012 for $100/share.
2. I purchase 100 shares of stock XYZ on Feb 10, 2014 for $200/share.
3. I sell 100 shares of stock XYZ on Feb 20, 2014 for $150/share, specifying the shares purchased in #2 as the specific lot to sell.

Question: is this a wash sale? Am I not allowed to claim the loss of $5000? If not, does this mean than I increase the cost basis of 100 shares of the 1000 that I purchased in #1 so that 100 of those shares now have a cost basis of $150/share?

What the others have said is correct - no wash sale, because you didn't purchase XYZ within 30 days of Feb 20.

The cost basis of the #1 purchase is not affected in any way by #2 and #3.

You have $5K in losses you can claim.