This will assist you in determining a cost basis for when you sell your shares. A wash sale is the purchase and sale of a security either simultaneously or within a short period of time. Wash sales taking place within 30 days of the underlying purchase do not qualify as tax losses under IRS rules. The purpose of the wash sale rule is to prevent a person from recognizing a loss on stock for tax purposes only. If you buy the stock back within a short period of time, the IRS will assume that the sale was made for tax reasons.
Capital gains reporting are the responsibility of the taxpayer.
I sold some stock at the end of December, but the settlement date was January 2. For tax purposes, the IRS requires you to report the sale in the year in which it was executed, rather than settled. So, if you sell shares in December 2000, any gains or losses you realize should be reported in the same calendar year. Fees paid to a broker to buy securities are not deductible, but are added to the cost of the securities. Commissions and fees paid by an investor on the sale of securities reduce the selling price.