Tax-managed tactics: eliminate wash sales

Inadvertently generating a wash sale can either defer or sacrifice a loss in your client’s portfolio. According to the IRS, there are at least four ways this can happen when you sell or trade stock or securities at a loss, and if within 30 days before or after the sale you:

  1. Buy substantially identical stock or securities,
  2. Acquire substantially identical stock or securities in a fully taxable trade,
  3. Acquire a contract or option to buy substantially identical stock or securities, or
  4. Acquire substantially identical stock for your individual retirement account (IRA) or Roth IRA.

To learn more, here's the IRS Rule.

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