A wash sale does not eliminate the benefit of harvesting a loss, but temporarily reduces it by the amount of the wash sale; the disallowed loss from the wash sale is added to the cost basis of the new shares purchased, allowing the investor to claim the tax benefit when those new shares are eventually sold.

Authors

• Person: Not available Organization: Wealthfront
  Wealthfront Tax-Loss Harvesting - Methodology

Sources

• Wealthfront Tax-Loss Harvesting - Methodology research.wealthfront.com Wealthfront via serper

Referenced by nodes (1)

• wash-sale rule concept