Hey, I'm Ryan Mallory, and this is my swing trading, the stock market podcast.

I'm here to teach you how to trade in a complex, ever-changing world of finance.

Learn what it means to trade profitably and consistently, managing risk, avoiding the pitfalls of trading,

and most importantly, to let those winners run wild. You can succeed at the stock market,

and I'm ready to show you how.

Hey, everybody, this is Ryan Mallory with Swing Trading the Stock Market. In today's episode,

we're going to talk about the wash sale rule, whether you should be concerned about it,

and how I approach that when it comes to my own trading. For those who are not familiar with the wash sale trading rule, it states that if an investment is sold at a loss

and then repurchased within 30 days, the initial loss cannot be claimed for tax purposes. In order

to comply with the wash sale rule, investors must therefore wait at least

31 days before purchasing the same investment. That comes right off investipedia.com. Again,

you buy a stock, you sell it for a loss, and then you repurchase it within 30 days. You can't use

it as a tax deduction. Okay, that's the, you know, having repurchase it within 30 days,

they don't let you claim it as a tax loss. There used to be a time where people would actually sell

their shares like the day before the end of the year take the loss of whatever they had and just

repurchase it back in the following year. And I guess if you kept buying a stock at $100 and it was dropping back down to $90, get

out, it goes back up to $100.

So you get back into it, it drops back down to 90.

And that just keeps happening over and over again.

In theory, obviously, it's a little bit different in real life.

I don't think the IRS wants to have to keep paying for the same losses over and over again, so they do this

wash sale rule where you can't buy it within 30 days. Do I really care too much about it?

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