The Wash Sale Rule: Six Things to Know to Avoid Tax Pitfalls

Roadway with caution signs for wash sale rule story.

Be aware of the wash sale rule enforced by the IRS. The rule is important for investors reassessing their market positions and looking to sell and repurchase declining stocks to offset losses.

Disallowed losses are a potential tax pitfall of violating the wash sale rule, so here are six key things you need to know.