How to Avoid the Tax Trap of the Wash-Sale Rule

What You Need To Know

• The rule disallows capital losses if the same or a “substantially identical” security is repurchased within 30 days before or after the sale.
• Tracking every sale and purchase to avoid triggering a wash sale is a complicated, error-prone task.
• Tax optimization, once a specialized offering, has become a fundamental component of modern wealth management.