So I bought a stock when it was high and sold low and bought again lower and then sold higher in less than a 30 day period.
I forgot about the wash sale rule and when I sold the position for what I thought was a profit turned out to be a loss. The cost basis was adjusted to reflect the wash sale.
I have 31 days to wait until the wash sale rule no longer applies before I buy/sell. I bought more stock on the 15th day of the wash sale period.
So does this mean that the 31 day wash sale window has been reset to an additional 31 days? And the most recent purchase has a cost basis to reflect this?
And if I don’t do anything for the next 31 days, what happens to the cost basis? Does it revert to the original purchase price?
So if bought stock x at 10 dollars and bought stock x again at 5 dollars, does the cost basis for both positions revert to 10 and 5?