A Refresher On The Wash Sale Rule!
A Refresher On The Wash Sale Rule?!
As we get into the end of each tax year the wash sale rule always comes in to play for active traders and investors! Implementing this rule is complex and even seasoned CPAs don’t always grasp the concepts!
At a base level a wash sale happens when a security is sold at a loss, then repurchased in a short period of time before or after the loss. The IRS has established the wash sale rule in order to prevent anyone from reducing their capital gains by creating wash sales. The most important time of year for day traders to pay attention to is December & January!
For a list of different transactions that could flag a wash sale check out this video
► • 3 Ways to Avoid the Wash Sale Nightmare!
Time Stamps
0:00 Introduction
1:15 The Wash Sale
2:05 What Was Uncle Sam Thinking?
2:51 What If I Want To Stay In The Stock?
3:37 Example Transaction
7:27 I can’t sit out for 30 days
9:09 Wash Sales Across Multiple Accounts
9:58 Wash Sales With Retirement Accounts
11:05 Conclusion
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DISCLAIMER: I am not a financial adviser but fortunately I am a CPA :). These videos are for educational and entertainment purposes only and should not be taken as "individualized" tax advice. Should you need tax solutions I highly recommend consulting with a professional or our CPA Firm. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.
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