™A taxable purchase costs $4,200. A $1,000 loss allocated to those replacement shares increases their basis to $5,200 in a simplified wash-sale example.
Taxes & Account Rules
Adjusted basis
An investment’s original tax basis after required increases or decreases, including certain wash-sale adjustments.
Plain-English context
Put the definition to work.
Do not allocate a matched wash-sale adjustment to unrelated shares; preserve the lot-level calculation and account treatment.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. IRS Publication 550 — investment income and expenses