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Here are a few of the most popular. 1. You sell for a loss, while your spouse buys. The wash-sale rule applies to both you and a spouse as if you were a unit. For example, you may not claim a loss ...
Tax-loss harvesting is valuable only in taxable accounts, ... If you want to buy back into the position later after claiming a loss, be sure to wait at least 30 days to avoid the wash-sale rule.
An important rule to understand when harvesting tax losses is the wash sale rule. If you take a loss on a security, you can’t buy the same or a “substantially identical” security 30 days ...
Most simply, if "tax-loss harvesting is not done properly, it will create a wash-sale that will eliminate the tax benefits of the buying and selling". The investor can employ a number of techniques to avoid triggering the wash sale rule. The investor can wait 30 days to repurchase the security.
Take advantage of tax-loss harvesting. ... They may end up repurchasing the investment, if they like it longer term, after a 30-day period, to avoid a wash sale. 5. Consider asset location.
A wash sale occurs when you take a loss on an investment and buy a “substantially identical” investment within 30 days before or after. If you try to claim a wash sale as a deduction, the IRS ...
The wash-sale rule prevents you from selling an investment at a loss, then buying a “substantially similar” one 30 days prior to the sale date and 30 days after. If you break the wash-sale ...
Tax-loss harvesting is a useful last-minute strategy, but be sure to avoid wash sales. Year-end distributions from mutual funds can foul up your plans.