Wash Sales

The wash sale rule stops you from claiming a tax loss if you buy the same investment back too soon. Here is how the 61-day window works, what happens to the disallowed loss and common traps. General education, not tax advice.

The rule

If you sell a stock or fund at a loss and buy the same or a “substantially identical” security within 30 days before or after the sale, the loss is generally disallowed for now. That creates a 61-day window around the sale. The rule stops investors from claiming a loss while keeping essentially the same position.

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