What is the wash sale rule?
Last updated: 12 August 2026
Not available in EN-US — showing English.
A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you:
- Buy substantially identical stock or securities,
- Acquire substantially identical stock or securities in a fully taxable trade
The IRS does not allow you to deduct losses from sales or trades of stock or securities in a wash sale unless the loss was incurred in the ordinary course of your business as a dealer in stock or securities.
If you would like additional information about wash sales please see IRS publication 550.
*Note: This is provided for informational purposes only. etoro does not provide tax or legal advice. You should consult with a tax or legal professional to address your particular situation.*
Was this article helpful?
Still need help?
We're happy to assist you, whenever you need us. Choose your preferred method of contact.