Author Topic: Auto invest paycheck every 31 days to prevent wash sale?  (Read 483 times)

shanaling

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Auto invest paycheck every 31 days to prevent wash sale?
« on: November 25, 2019, 01:35:13 PM »
Hi, this might be a dumb question but should I auto-invest my paycheck every 31 days instead of i.e. 1st of every month to prevent a wash sale if I decide to tax loss harvest? Thanks!

Stimpy

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Re: Auto invest paycheck every 31 days to prevent wash sale?
« Reply #1 on: November 25, 2019, 02:06:14 PM »
And I quote:
Quote
The wash-sale rule was designed to discourage people from selling securities at a loss simply to claim a tax benefit. A wash sale occurs when you sell a security at a loss and then purchase that same security or “substantially identical” securities within 30 days (before or after the sale date) - https://www.schwab.com/resource-center/insights/content/a-primer-on-wash-sales

I would say yes based on the way the rule was written.