Wash Sale Rule Calculator
Calculate IRS wash-sale rule disallowed capital losses, replacement stock cost basis adjustments, and taxable holding periods for equity and crypto traders.
$2,000 capital loss is disallowed for this tax year and added to replacement shares' cost basis.
Trade Transaction Details
Navigating the IRS Wash-Sale Rule and Basis Adjustments
The IRS Wash-Sale Rule (IRC § 1091) prohibits taxpayers from claiming a capital loss on the sale of stock, securities, or mutual funds if they acquire 'substantially identical' stock or securities within a 61-day window—specifically 30 days before the sale, the day of the sale, or 30 days after the sale. While the capital loss cannot be deducted immediately on Schedule D, it is not permanently lost: the disallowed loss is added to the cost basis of the replacement shares.
High-Net-Worth Features
61-Day Window Tracking
Accurately enforces the 30 days prior, date of sale, and 30 days following window to detect wash-sale trigger events.
Disallowed Loss Calculation
Computes exact disallowed loss on partial or total replacement share quantities.
Adjusted Cost Basis Engine
Automatically adds disallowed loss amounts to the replacement shares' purchase basis to defer tax benefits lawfully.
Holding Period Tacking
Adds the holding period of the original sold shares onto the replacement shares to preserve long-term capital gains status.
Partial Wash Sale Pro-Rata Math
Accurately handles scenarios where fewer replacement shares are purchased than the number of loss shares sold.
IRS Form 8949 Adjustment Code 'W'
Outputs specific adjustment values ready for reporting in Column (g) of IRS Form 8949.
Tax & Financial Planning Scenarios
- ✓Active Stock & Options Day Traders
Avoid catastrophic year-end tax surprises caused by cascading wash sales across high-frequency trades.
- ✓Tax-Loss Harvesting Investors
Safely harvest equity losses by replacing sold stocks with non-identical ETFs (e.g. swapping Vanguard VOO for Schwab SCHX).
- ✓Crypto & Digital Asset Speculators
Anticipate upcoming congressional legislation extending wash sale rules to digital currencies and tokens.
- ✓CPAs & Tax Professionals
Verify broker Form 1099-B wash sale Box 1g adjustments against actual client trade confirmations.
Frequently Asked Questions
What is the 61-day wash sale window?
The wash-sale window spans a total of 61 days: the 30 calendar days before the sale date, the day of the sale itself, and the 30 calendar days after the sale date. Buying substantially identical stock during this window triggers a wash sale.
Is the capital loss lost forever in a wash sale?
No. The disallowed loss is added to the purchase price (cost basis) of the new replacement shares. When you eventually sell the replacement shares outside of a wash-sale window, the increased cost basis reduces your taxable gain or increases your deductible loss.
Does the wash sale rule apply across different brokerage accounts?
Yes. The IRS applies the wash-sale rule to the taxpayer across all accounts, including taxable accounts at different brokers, traditional IRAs, and Roth IRAs. Note: Triggering a wash sale by buying replacement shares inside an IRA permanently eliminates the tax deduction without adding to basis.
What does 'substantially identical' mean?
Common stock of the same company or stock and its call options are substantially identical. However, selling an S&P 500 ETF (like SPY) at a loss and immediately purchasing a Total Stock Market ETF (like VTI) is generally recognized as permissible tax-loss harvesting because the underlying indices are different.
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