# Stop Losing Tax Deductions: The 30-Day Wash Sale Trap Explained

Trade stocks at a loss hoping to offset gains? Careful—the IRS has a rule waiting to bite you.

**What's a wash sale?** You sell a stock for a $1,000 loss, then rebuy the same or "substantially similar" stock within 30 days. Boom—IRS says no tax deduction for you. The loss disappears.

**Why it matters:** Active traders and frequent rebalancers trigger this constantly without realizing. You can't claim that $1,000 loss on your return, which tanks your tax strategy.

**The 30-day window is strict:** Starts day 1 of the sale, ends day 30. Buy back on day 31? You're safe. Day 30? You're locked out.

**Real example:** Sell Stock ABC at -$1,000 on Dec 31. Buy similar Stock XYZ on Jan 2. Wash sale triggered. You can't write off the loss.

**How to dodge it:**
- Track all sales for 60 days (30 before + 30 after any purchase)
- Wait 31+ days minimum before rebuying
- Switch to fundamentally different assets (not just different ticker)
- Consult a tax pro if unsure—penalties aren't worth it

**Bottom line:** Wash sales kill tax-loss harvesting strategies. If you're tax-planning your portfolio, this rule is your biggest enemy. One oversight and you leave money on the table.