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Day Trading Tax Treatment — day trader wash sale confusion

Started by frustrated_trader_MA · Feb 26, 2025 · 557 views · 10 replies
For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.
FT
frustrated_trader_MA OP

I've been trying to resolve this on my own but I'm stuck.

day trader wash sale confusion. I've been dealing with this for about 8 weeks now and the situation isn't improving.

I have already tried to resolve this directly but got conflicting advice.

Should I hire a lawyer for this or try to handle it myself?

NF
newbie_freelancer_2022

Following this thread — I'm in a very similar situation. Would love to hear how it turns out.

ND
newbie_dev_today

NAL, but from what I've read, you should send a written demand. That said, definitely get a lawyer to look at the specifics.

TL
Mod_TermsLaw Moderator

Licensed attorney — a few thoughts. Here's my take on the legal issues.

This is a common situation and the law is fairly clear. Under the relevant statute, actionable.

The practical consideration here is cost vs. potential recovery. For disputes under $10K, small claims court is often the best route.

CM
ContractorMike_CA

I've seen this play out several times in my field.

The biggest mistake people make in this situation is having everything documented. I'd recommend keeping a detailed timeline instead.

SB
SmallBizOwner_NYC

I went through almost the exact same thing.

What worked for me was filing with the appropriate government agency. It took 4-8 months but was worth it.

RL
RetiredLawyer_FL

Not a lawyer, but I have direct experience with this.

In my case, it took about 2-4 months to resolve. The key was hiring an attorney to send the initial letter.

NH
need_help_driver_2026

This happened to me too. Have you tried filing a complaint with the relevant agency? In my case they investigated and it got resolved without needing a lawyer.

DS
DevOps_Seattle

Not a lawyer, but I have direct experience with this.

The biggest mistake people make in this situation is filing with the appropriate government agency. I'd recommend gathering evidence first instead.

DN
DataPrivacy_Nerd

I've dealt with this before.

In my case, it took about 3-6 months to resolve. The key was having everything documented.

NH
need_help_freelancer_MA

Have you tried reaching out to your state's attorney general? They sometimes have free resources or mediation services.

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