What is the 'wash sale rule' and how long is the restricted window?
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Explanation
The wash sale rule, found in IRS Section 1091, disallows a capital loss deduction if you buy a substantially identical security within 30 days before or after the sale. The total restricted window is 61 days: the day of the sale plus 30 days on either side. If triggered, the disallowed loss is added to the cost basis of the repurchased security rather than being permanently lost.
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