fb-wash-0019
{
"facts": "On April 14, 2026, a taxable account sells 200 shares of KLM common stock for $31.00 per share; the basis is $45.00 per share. It buys 90 shares of KLM on April 24, 2026 and another 60 shares on May 8, 2026. There are no other KLM acquisitions within 30 days before or after the sale.",
"shares_sold": 200,
"sale_proceeds_per_share": 31,
"basis_per_share": 45,
"replacement_shares_in_window": 150,
"note": "Both purchases fall inside the 61-day window; together they total 150 replacement shares against 200 shares sold."
}How many dollars of the realized loss are disallowed under section 1091? Respond with the numeric amount only.
2100 USD (tolerance ±0.01)
Produced by compute washsale.disallowed-loss in src/lib/fiduciarybench/keys/index.ts — the stored value is machine-checked against the compute on every build; it cannot drift from its own code.
Both in-window purchases count: 150 replacement shares wash 150 of the 200 shares sold at a $14.00-per-share loss, so $2,100 is disallowed and $700 remains deductible.
“within a period beginning 30 days before the date of such sale or disposition and ending 30 days after such date, the taxpayer has acquired (by purchase or by an exchange on which the entire amount of gain or loss was recognized by law), or has entered into a contract or option so to acquire, substantially identical stock or securities, then no deduction shall be allowed”
“If the amount of stock or securities acquired (or covered by the contract or option to acquire) is less than the amount of stock or securities sold or otherwise disposed of, then the particular shares of stock or securities the loss from the sale or other disposition of which is not deductible shall be determined under regulations prescribed by the Secretary”
“The stock or securities acquired will be matched in accordance with the order of their acquisition (beginning with the earliest acquisition) with an equal number of the shares of stock or securities sold or otherwise disposed of.”
Each quoted passage is exact-matched, after typographic normalization, against the corpus text fetched from the issuing authority (hashes in the corpus manifest). An item whose quote stops matching fails the build.
“The stock or securities acquired will be matched in accordance with the order of their acquisition (beginning with the earliest acquisition) with an equal number of the shares of stock or securities sold or otherwise disposed of.” — cfr-1-1091-1
The taxpayer sold 200 shares at a loss of $14.00 per share ($45.00 basis - $31.00 proceeds). Within the 61-day window, the taxpayer acquired a total of 150 replacement shares (90 on April 24 and 60 on May 8). Under 26 CFR 1.1091-1(c), because the number of shares acquired is less than the number sold, the 150 acquired shares are matched with 150 of the sold shares, disallowing the loss on those specific shares. The disallowed loss is therefore 150 shares * $14.00/share = $2100. The key is correct.
“The stock or securities acquired will be matched in accordance with the order of their acquisition (beginning with the earliest acquisition) with an equal number of the shares of stock or securities sold or otherwise disposed of.” — cfr-1-1091-1
The sale produced a realized loss of ($45 - $31) x 200 = $2,800. Only 150 replacement shares were acquired within the 61-day window, which is less than the 200 shares sold. Under Treas. Reg. §1.1091-1(c), the 150 acquired shares are matched with 150 of the sold shares, so the disallowed loss is 150 x $14 = $2,100. The key value is correct.
v1; no errata. Demonstrate a key error and the correction is published here, credited — challenge policy.