[guscusi]

Wash Sales / Disallowed Loss Carry Forward

I would like to know if the deferred disallowed loss from the sale of stock can be applied to the replacement stocks if I sell them at the end of the year and have ZERO "inventory" of the replacement stock at 2016 year closing,. EVEN if I buy them again in January 2017.

E.g.
1) 12/25 Buy 100 sh @ $10 = $1000
12/25 Sell 100 sh @ $9 = $900 = LOSS $100

2) 12/26 Buy 100 sh @ $11 = $1100
12/26 Sell 100 sh @ $9 = $900 = LOSS $200 ---> Wash Sale---> DISALLOWED ---> $200 Deferred Loss

3) 12/27 Buy 100 sh @ $12 = $1200 (Replacement Shares)
12/27 Sell 100 sh @ $8 = $800 = LOSS $300 + $200 Def. Loss from "2)" = LOSS $500.

So my capital Gains at year end would be
1) $100 LOSS
2) $0
3) $500... TOTAL $600

BUT... what if I buy this share again on 01/05??

Is there a cut-off at year end or does the 30 day rule apply, even if I did not have the replacement shares at the end of the year?

[AtlantaTaxExpert]

No, the 30-day rule carries over to 2017.

You need to wait until Februar.