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Learning, Sharing, and Teaching => Investor Alley => Topic started by: shanaling on November 25, 2019, 01:35:13 PM

Title: Auto invest paycheck every 31 days to prevent wash sale?
Post by: shanaling 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!
Title: Re: Auto invest paycheck every 31 days to prevent wash sale?
Post by: Stimpy 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.