The Wash Sale Rule: Six Things You Need to Know

Avoid violating the IRS wash sale rule for tax losses when you sell and rebuy stocks.

roadway with caution signs for wash sale rule story
(Image credit: Getty Images)

Be aware of the wash sale rule enforced by the IRS. The wash sale rule is important for investors reassessing their market positions and looking to sell and repurchase declining stocks to offset losses. Disallowed losses are a potential pitfall of violating the wash sale rule, so here are six things you need to know. 

1. What the wash sale rule is 

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Kelley R. Taylor
Senior Tax Editor,

As the senior tax editor at, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.