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system
what is the purpose of the wash sale rule?
user
equal sized gains and losses in alternating years would lead to an   unjust positive tax. on the contrary. if i can take my gains at the long term rate (15%) in even years, but take losses in odd years, up to $3000, or let them offset short term gains at ordinary rate, i've just gamed the system.  what is the purpose of the wash sale rule? respectfully, we here can do a fine job of explaining how a bit of tax code works. and we can suggest the implication of those code bits. but, i suspect that it's not easy to explain the history of particular rules. for wash sale, the simple intent is to not let someone take a loss without actually selling the stock for a time. you'd be right to say the +/- 30 days is arbitrary.  i'd ask you to keep 2 things in mind if you continue to frequent this board -
assistant