Quickly Check Your Trades for Wash Sale Issues

A wash sale occurs when you sell a security at a loss and then buy the same or a very similar one within 30 days before or after the sale. The IRS has this rule to prevent people from creating fake losses to lower their taxes. For Act 60 investors, this is important because even though your gains might be tax-free in Puerto Rico, you still need to be careful about U.S. tax rules. Our tool makes it easy to spot these trades so you can avoid any trouble.

The 30-day rule is simple: if you buy a security within 30 days of selling it at a loss, you can't claim that loss on your taxes. This applies to 30 days before and 30 days after the sale, making it a 61-day window to watch out for. It's easy to accidentally trigger this rule, especially if you trade frequently. Our quick check scans your trades and flags any that fall within this window, giving you a clear picture of your compliance status.

Right now, the wash sale rule doesn't apply to crypto because it's considered property, not a security. This means you can sell your crypto at a loss and buy it back right away without penalty. But this could change soon. Lawmakers are looking at applying the wash sale rule to crypto, so it's important to stay informed. Our service keeps you up-to-date on the latest rules so you're never caught by surprise.