The Wash Sale Rule
Top page in our explanation of the wash sale rule.
The wash sale rule prevents you from claiming a loss on a sale of stock if you buy replacement stock within 30 days before or after the sale. That sounds simple enough — but there are so many questions that arise in connection with the wash sale rule that we devote an entire section of our website to the subject. The first article, Wash Sales 101, provides the essentials and will also give you an idea what kind of details you'll find in the other articles. An index to our articles on wash sales appears below.
Page Descriptions
Wash Sales 101
Most people will learn all they need to know about the wash sale rule on this page.
Wash Sales and
IRAs
Can you avoid the wash sale rule by buying replacement stock in your IRA?
It's risky.
Substantially
Identical Securities
You don't have a wash sale unless you acquire substantially identical securities. This
page explains when one share of stock is substantially identical to another.
Wash Sales and
Replacement Stock
You don't have a wash sale, even though you bought identical shares within the previous 30
days, if the shares you bought aren't replacement shares.
Wash Sale
Matching Rules
There are mechanical rules to handle the situation where you don't buy exactly the same
number of shares you sold, or where you bought and sold multiple lots of shares.
Wash Sales and
Options
You don't actually have to purchase stock within the wash sale period to have a wash sale.
It's enough if you merely enter into a contract or options to buy replacement stock.
Short Sales and the
Wash Sale Rule
Short sales present special problems in connection with the wash sale rule.
Same Day
Rule for Wash Sales
The IRS causes confusion with a statement about gains and losses in the same
day.
Traders and Wash
Sales
There are special considerations in applying the wash sale rule to traders.
