Wash Sale Rule
InvestingIRS rule disallowing a loss deduction when you buy a substantially identical security within 30 days before or after the sale.
Example
Example: Consider an investor building a $100,000 portfolio. Wash Sale Rule — irs rule disallowing a loss deduction when you buy a substantially identical security — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.