How do the wash sale rules apply if the taxpayer purchased fewer shares of substantially...

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Accounting

How do the wash sale rules apply if the taxpayer purchased fewer shares of substantially identical stock than the number of shares sold within the 61-day prohibited period?

A portion of the loss is deferred based on the quantity of the stock. 100% of the loss is deferred. 100% of the loss is recognized. A portion of the loss is deferred based on the value of the stock.

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