Selling and Rebuying Stocks? Beware the Wash Sale Rule
Everything from high inflation to steep stock market declines in 2022, has spurred some investors to reevaluate their market positions. Maybe you're in that boat—focusing on offsetting losses by selling and rebuying declining stocks. If so, you'll want to tread carefully. You don’t want to have your losses disallowed by the IRS because of the wash sale rule.
What is the Wash Sale Rule?
To understand how to avoid the wash sale rule, as you evaluate some of the or sell, and the various , it helps to first know what a wash sale is. A wash sale occurs when you sell or trade a security at a loss, and then rebuy or acquire the same security
