Re: End of the Year.
in response to
by
posted on
Oct 29, 2022 12:18PM
Actually,IRR, the Wash Rule incorporates 61 days and applies to Buys made 30 days before the Sale at a loss of a security AND to Buys made within 30 days after the Sale at a loss of a security:
From Investopedia:
The wash-sale rule is an Internal Revenue Service (IRS) regulation that prevents a taxpayer from taking a tax deduction for a loss on a security sold in a wash sale.
The rule defines a wash sale as one that occurs when an individual sells or trades a security at a loss and, within 30 days before or after this sale, buys the same or a substantially identical stock or security, or acquires a contract or option to do so.1
A wash sale also results if an individual sells a security, and the individual's spouse or a company controlled by the individual buys a substantially equivalent security during the 61-day wait period.
The point of the rule is to prevent investors from creating an investment loss for the benefit of a tax deduction while essentially maintaining their position in the security.