Scenario 10 of 10 · illustrative
Scenario: selling at a loss and buying back within 30 days
Blake sells 100 units at a loss in June to use the loss against gains, then buys 40 units back 15 days later and still holds them a month after the sale.
The assumptions
| Input | Value |
|---|---|
| Bought | 100 units for $8,000 |
| Sold | 100 units for $5,000 on June 10 |
| Bought back | 40 units for $2,100 on June 25 |
Step by step
- The loss. Proceeds $5,000 minus ACB $8,000: a loss of −$3,000.00.
- The window test. The repurchase is 15 days after the sale, inside the 30-day window, and Blake still holds the 40 units on day 30. So 40 of the 100 units sold were replaced.
- Denied and allowed. 40% of the loss, $1,200.00, is a superficial loss. −$1,800.00 can be claimed now.
- Where the denied loss goes. It's added to the cost base of the 40 new units: $2,100.00 + $1,200.00 = $3,300.00, or $82.50 per unit. It reduces the gain (or increases the loss) when those units are sold.
The takeawayThe superficial-loss rule usually delays a loss rather than removing it. Recurring buys, rewards and a spouse's purchases can all trigger it.
Questions people ask
Would waiting 31 days avoid it?
If no identical units are acquired from 30 days before to 30 days after the sale by you or an affiliated person, the rule doesn't apply.
Names, rates and prices in this scenario are illustrative and computed for education. They aren't forecasts, quotes or recommendations.
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