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Wash sale rule (US)

A US tax rule that disallows a loss if you buy the same or a substantially identical security within 30 days before or after the sale.

ETFs & PortfolioIntermediate

Definition

The window is 61 days in total. A disallowed loss is added to the cost basis of the new purchase, so it is deferred rather than lost. The rule can apply across accounts.

Watch out for

General information, not tax advice. The Canadian counterpart is the superficial loss rule.

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