Question: To offset my 2024 capital gains, I sold off a tranche of stock in a loss position in late December to avoid owing taxes. I repurchased most of that stock in January because I believed that ...

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.

Heavy traders may assume they’ll owe no capital gains tax if their losses and gains even out. But then they stumble across the wash sale rule. At the height of the pandemic born meme stock boom in ...