Free Wash Sale Calculator
Check if your trades trigger IRS wash sales
About This Tool
What is a Wash Sale?
A wash sale occurs when you sell a security at a loss and buy the same or "substantially identical" security within 30 days before or after the sale. The IRS disallows the loss deduction, which can significantly impact your tax bill.
The 61-Day Wash Sale Window
The wash sale rule creates a 61-day window: 30 days before the sale, the sale date itself, and 30 days after. Any purchase of the same security within this window triggers a wash sale.
Common Wash Sale Triggers
- Direct repurchases - Selling and buying back the same stock
- RSU vesting - RSUs that vest within 30 days of selling company stock at a loss
- ESPP purchases - Employee stock purchase plan buys within the window
- DRIP reinvestments - Automatic dividend reinvestment programs
- Different accounts - Buying in an IRA while selling in a taxable account
- Spouse purchases - Your spouse buying the same security
- Options - Buying call options or selling puts on the same stock
What Happens to Your Disallowed Loss?
When a wash sale occurs, the disallowed loss gets added to the cost basis of your replacement shares. The loss isn't lost forever—it's deferred until you eventually sell those shares. But you lose the immediate tax benefit.
Example: How Wash Sales Work
Initial purchase: 100 shares at $50 = $5,000 cost basis
Sell at loss: 100 shares at $30 = $3,000 proceeds → $2,000 loss
Repurchase within 30 days: 100 shares at $32 = $3,200
Result: $2,000 loss disallowed, added to cost basis
New cost basis: $3,200 + $2,000 = $5,200
Wash Sales and Tax Optimization
Tax loss harvesting—selling losing positions to offset gains—is a powerful tax strategy. But wash sales can ruin it. If you want to maintain market exposure while harvesting losses, consider buying a similar but not substantially identical security instead.
For example: Sell a total market ETF (VTI) and buy an S&P 500 ETF (VOO). They're similar but not substantially identical, so no wash sale. Always consult a tax professional for your specific situation.
Frequently Asked Questions
Do wash sales apply to cryptocurrency?
No, currently. As of 2026, cryptocurrency is not classified as a security and is not subject to wash sale rules. However, Congress has proposed legislation to change this, so stay informed about current regulations.
Can I avoid wash sales by selling in my taxable account and buying in my IRA?
No. Wash sale rules apply across all your accounts, including IRAs, 401(k)s, and your spouse's accounts. Worse, losses disallowed by purchases in retirement accounts may be permanently lost (not just deferred).
Does the wash sale rule apply to gains?
No. Wash sale rules only apply to losses. If you sell at a gain and repurchase, there's no wash sale concern.
Related Resources
- How to Avoid Wash Sales with RSUs: The 30-Day Rule Explained
- RSU Vesting and Sale Planning: A Simple Plan
- RSU Cost Basis and Capital Gains: How to Report Vesting and Sales
- How RSUs Work: Why Your $100K Grant Is Actually Worth $60K
- Year-End Tax Loss Harvesting Checklist
- Portfolio Simulator - Test trade scenarios
- Federal Tax Calculator - Calculate tax impact