Wash Sales! What to add to Cost Basis of Replacement Stock
So far here's what I know about wash sales. If you sell a stock at a loss and buy the same or similar stock within 30 days, its considered a wash sale. The loss you incurred from the sale gets added to the cost basis of the new replacement stock you purchased. This is easy enough if you bought the same number of shares that you sold.
1. Is the loss carry over proportionate?
For example
Jan 1 Sold 100 share of XYZ stock and lost $1000. $10 loss per share
Jan 20 Bought 50 shares of XYZ stock at $20. The loss from the sale gets carried over proportionately? The cost basis for the 50 replacement stocks is $20+$10 carry over = $30/ share. Is this correct?
2. If the above is true, lets say I do no buy any more shares of XYZ stock. What happens to the other $500 loss from the Jan 1 sale that was never applied to replacement shares? How do I report this loss? Do I not get to claim this loss?
You help is appreciated.