system
A chat on subreddit /r/wallstreetbets
human
This implies elmo sold at the end of tax-period and rebought after, and somehow sold again for (probably even worse) loss. Unless Elmo actually made money. 
  
 So if the wash-sales are adjusted in for next tax-period, wouldn't Elmo still losing money mean that he still needs not to pay taxes?

gpt
You can only offset gains with losses. If you have 100k in realized gains and can't deduct losses because you rebought another stock, you have to pay taxes on the $100k gained.