NewInvesting··9 min
A Wash Sale Usually Just Delays Your Loss. Buying It Back Inside an IRA Destroys It.
Trip the wash sale rule in a taxable account and the loss is deferred, not lost: it moves into the cost basis of the replacement shares. Repurchase inside an IRA or HSA instead and there is no basis to move it to, so the deduction is gone permanently. Your broker will not flag it.
tax loss harvestingwash saletaxes