On January 21, 2007, Andy purchased 350 shares of Baker common stock for $24,500. On November 13, 2018, he sold the 350 shares for $7,250. On December 1, 2018, Andy purchased 350 shares of Baker common stock for $8,000. What is Andy's basis in these shares?

Question

Quizplus · Accepted Answer

Andy's basis in the new shares equals their cost of $8,000 plus the deferred loss from the wash sale ($17,250 = $7,250 - $24,500).

On January 21, 2007, Andy Purchased 350 Shares of Baker