Wash Sale Rule Tax-Loss Harvesting 2027

Calculate wash sale rule impact 2027 — selling losing stock then buying back within 30 days disqualifies loss. Rules + workarounds for tax-loss harvesting.

Wash Sale Rule

Cannot claim loss if you buy SAME security 30 days BEFORE or AFTER sale. Total 61-day window. Disallowed loss adds to new shares' basis.

'Substantially Identical'

Same stock = wash sale. ETF tracking same index (VOO + IVV) = wash sale. Different index ETFs (VOO + VTV) = NOT wash sale. Mutual fund + ETF = often wash sale.

Workaround: Similar Not Identical

Sell VOO (S&P 500). Buy VTI (Total Market) for 31 days. Both broad equity exposure. Different index = not substantially identical. Then swap back.

Year-End Strategy

Harvest losses Dec 31. Bank up to $3,000/yr offset against ordinary income. Excess carries forward indefinitely. Free tax savings.

Source: irs.gov Publication 550 Wash Sale rules, Section 1091. Last updated: May 2026.

Frequently Asked Questions

Spouse's account counts?

Yes. Wash sale applies to spouse's account, kids' accounts, IRA, all. IRS treats household as one.

Wash in IRA?

Yes — and worse. Loss permanently lost (cannot add to IRA basis). Avoid harvesting losses in taxable while buying in IRA.

Tax-loss harvest annually?

Yes — every December. Up to $3k offset ordinary income + unlimited offset capital gains. Big savings over decades.