how do i avoid a wash sale 
if you have sold or intend to sell a security at a loss you can avoid triggering the wash sale rule by purchasing a similar instrument 31 days or more before or after the sale the bottom linea wash sale occurs when an investor sells a security at a loss and then purchases the same or a substantially similar security within 30 days before or after the transaction this rule is designed to prevent investors from claiming capital losses as tax deductions if they re enter a similar position too quickly while not illegal wash sales have negative tax implications losses from such sales cannot be used to offset gains in the same tax year however these losses can be added to the cost basis of the newly purchased security affecting future gains this rule is relevant to all types of securities and trading and it s particularly significant for day traders and investors looking to use capital losses to mitigate tax liabilities understanding and navigating the wash sale rule is crucial for effective tax planning and investment strategy correction oct 14 2022 a previous version of this article misleadingly stated that a wash sale occurred when selling a security at a loss for a tax benefit it also incorrectly stated that an investor could not purchase the same or similar security within the 60 day window of 30 days before or 30 days after selling it 