Tax-loss harvesting with wash-sale caveats
Sell losing investments to offset gains and reduce taxable income. The wash-sale rule blocks the deduction if you buy a substantially identical security within 30 days before or after the sale.
by R. Lindqvist
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75% holds up95 votes
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- SupportM. Kessler · Aug 18, 2026
Legitimate and widely used. Just be careful with reinvested dividends — they can trigger a wash sale without you noticing.
- CounterpointJ. Okafor · Aug 22, 2026
The $3,000 annual cap on capital-loss deductions against ordinary income is a real limit people overlook.
- SupportP. Moreau · Aug 27, 2026
The wash-sale rule is codified in the Internal Revenue Code.
26 U.S.C. § 1091 — Loss from wash sales of stock or securities. · read the source