Hi guys as you know the ATO can crack down on you for tax loss selling if you: sell a stock (to cancel gains by stocks) then buy that stock back.
I am wondering if I buy more shares first (dilute my stock where I've had losses) then sell the diluted total, would the ATO stop the tax loss from this scenario?
e.g. 100 shares of BHP I've lost 50% on. I buy 100 more shares at current price, then sell 100 right after taking advantage of losses from 50 of my initial shares. While my holding stays the same.