Rules for a wash sale

• A wash sale occurs when you sell a security at a loss and then purchase the same security again within a short period.
• The wash-sale rule prevents investors from selling at a loss, buying the same or substantially identical investment back within a 61-day window, and claiming the tax benefit.
• The IRS created the Wash Sale Rule to prevent investors from selling securities for the sole purpose of claiming a tax loss while immediately repurchasing the same security.
• Under the wash-sale rules, a wash sale happens when you sell a stock or security for a loss and either buy it back within 30 days after the loss-sale date or "pre-rebuy" shares within 30 days before selling your longer-held shares.