The wash sale rule basically says that if you sell a stock or securities at a loss and buy replacement stock or securities 30-days before, or 30- days after the sale of substantially identical stock or securities, you can't deduct the loss.
Wash Sale Rule
An IRS rule that prohibits a capital loss from being used for tax purposes on a security that was sold for a loss, if or when an equivalent security is purchased within thirty days or less, before or after the security was sold.
Wash Sale Rule- It states that an investor should not claim a capital loss for tax purposes as long as the capital was repurchased within 30 days.
Zero-Sum Game- This is the case when someone only gains when another investor losses.
Wash sale rule: An IRS rule that prohibits an investor from claiming a loss on the sale of an investment if that same investment or an investment that is materially the same is purchased within 30 days before or after the sale.
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WASH SALE RULE
An IRS tax rule that prohibits claiming a loss on the sale of an investment if it or a substantially identical investment is purchased within 30 days before or after the sale.
In USA, the wash sale rule has the following consequences:
Basis Adjustment: You are not allowed to claim the loss on your sale. Your disallowed loss is added to the basis of the replacement stock.
Avoid the Dreaded Wash Sale Rule on Your Stock Trading Activities!
If you trade stock regularly, you may find yourself accidentally violating the dreaded wash sale rule, costing you huge tax penalties.
wash sale rule An IRS regulation preventing wash sales; the wash sale rule prohibits a taxpayer... wasting asset An asset that has a limited life, and therefore decreases in value over time (i.e. an option which is out of the money).
" This question was posed to the IRS and its response is as follows: "The wash sale rule doe snot apply when an individual sells securities at a loss and identical securities are purchased by his/her IRA within 30 days.
Under what is commonly called the "wash sale rule," if you repurchase the losing stock within 30 days of selling it, you can't deduct your loss.
For example if you claim a capital loss on your tax return and it is disallowed under the wash sale rule, ...
Estate and Gift Tax
Gifts of Stock
Non-Resident Aliens and US Holdings
Reporting Fund Distributions
Reporting Option Trades
Short Sales Treatment
Tax Swaps
Uniform Gifts to Minors Act (UGMA)
Wash Sale Rule ...
Do not buy if the previous trade in the same stock was a loss and it occurred within 31 days (the wash sale rule).
For a sale, the look back is 14 days.
Sell when the RSI climbs to or above 80 and then drops below it.
 See also: Wash sale, Sell, Loss, Market, Capital
  
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