Wash sale: offset a gain with another stock's loss?

[Alex]

Can I offset a capital gain with another stock's loss, and immediately buy back the stock with the gain? For example,

- I sell stock ABC with a loss of $10000
- I sell stock XYZ (100 shares, bought at $100, sold at $200) with a total gain of $10000
- I immediately buy back stock XYZ at $200

My questions are:
1) Is it true that I have no net capital gains for tax purposes for the year because my loss offsets my gains?
2) Do I get to set the cost basis for stock XYZ to the new, higher price of $200, despite the fact that I immediately sold and bought it back to offset the loss on ABC?

Thanks.

 

[judy]

It's not a wash sale, a wash sale is on a loss if you buy it right back - you can't deduct the loss, you just adjust the basis.

But yes, you can offset one gain with another stock's loss. You are correct that you have no net capital gain, so no cg tax, in the circumstances you describe, and that your basis for the new XYZ you bought is now $200, what you bought it for.

 

[judy]

It's not a wash sale, a wash sale is on a loss if you buy it right back - you can't deduct the loss, you just adjust the basis.

But yes, you can offset one gain with another stock's loss. You are correct that you have no net capital gain, so no cg tax, in the circumstances you describe, and that your basis for the new XYZ you bought is now $200, what you bought it for.

 

[judy]

It's not a wash sale, a wash sale is on a loss if you buy it right back - you can't deduct the loss, you just adjust the basis.

But yes, you can offset one gain with another stock's loss. You are correct that you have no net capital gain, so no cg tax, in the circumstances you describe, and that your basis for the new XYZ you bought is now $200, what you bought it for.