Trading Tax Basics Quiz for US Stock Traders

Test how well you know the US tax rules that shape a trading year: the 61-day wash sale window, the one-day holding period trap, basis adjustments and which lots leave when you sell.

AI-assisted, reviewed by Ryza Glorioso →

Questions: 10
Level: Intermediate
Time: 5 min

Question 1 of 10

1You sell 200 shares of a stock at a loss. Which later purchase of the same stock falls outside the IRS wash sale window?

A Buying 50 shares 20 days before the losing sale B Buying 200 shares 31 days after the losing sale C A dividend reinvestment of 4 shares 5 days after D Buying 100 shares 30 days after the losing sale

2You buy 200 shares at 30.00, sell all 200 at 26.00, and buy 200 back 15 days later at 27.00. What is the per-share cost basis of the replacement shares?

A 27.00 B 26.00 C 30.00 D 31.00

3You buy shares with a trade date of March 3 in year 1. What is the earliest sale date that gives you a long-term result?

A March 4, year 2 B March 3, year 2 C March 2, year 2 D March 5, year 2, once T+1 settlement passes

4In an ordinary taxable account you sell a position for a 3,000 realized gain and put the whole amount into another stock that afternoon. When is that gain taxable?

A Only once you withdraw cash from the account B Only if the account ends the year above its starting value C In the tax year of the sale, whether or not the cash leaves D Only when the new stock bought with the proceeds is sold

5Your realized results for the year are +1,800, -500, +700, -1,200 and -300. You bought the -1,200 stock back 10 days after selling it. What is the net realized gain for the year?

A 500 B 1,700 C 2,500 D 2,900

6You hold 150 shares bought for a total of 9,000. The company does a 3-for-1 stock split. What does your basis look like afterward?

A 450 shares, 20.00 a share, 9,000 total B 450 shares, 60.00 a share, 27,000 total C 150 shares, 20.00 a share, 3,000 total D 450 shares, 30.00 a share, 13,500 total

7You own lot A, 100 shares at 35 bought well over a year ago, and lot B, 100 shares at 48 bought five months ago. You sell 100 at 44 and name lot B. What is the result?

A A 900 long-term gain B A 400 long-term loss C A 900 short-term gain D A 400 short-term loss

8You want to use specific identification to choose which lots leave on a partial sale. When do you generally need to make that choice?

A Any time before you file the return for that year B By December 31 of the year of the sale C By the time of the sale itself D Within 30 days of the trade settling

9You sell a stock at a loss in your taxable account and buy the same stock 10 days later in an IRA at a different firm. What should you expect from your 1099-B?

A It will show the loss as disallowed, since brokers share data B It likely will not flag it, yet the wash sale rule can still apply C It will show nothing, because IRA purchases never count D It will move the loss into the IRA shares' basis for you

10You held shares for ten months, sold them at a loss, and bought them back inside the wash sale window. How is the holding period of the replacement lot counted?

A It starts with the ten months already counted B It starts fresh the day after the buyback C It starts fresh, and the loss is gone for good D It is always treated as long term from now on

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