Wash Sale Rule
What is Wash Sale Rule?
A U.S. rule that disallows a tax loss if you buy the same or a substantially identical security within 30 days.
Understanding Wash Sale Rule
If you sell a security at a loss and buy the same or a substantially identical one within 30 days before or after the sale, you cannot claim the loss for now.
The disallowed loss is added to the cost basis of the new shares, so the tax benefit is deferred rather than lost.