What are the exceptions to the wash sale rule?

What are the exceptions to the wash sale rule?

The wash sale rule disallows a tax deduction for a security sold at a loss if you repurchase the same or substantially identical security within 30 days. However, there are a few exceptions. Would you like to know more about them?

Yes, please explain the exceptions.

One exception is if you sell a security at a loss and then buy it back in a different account, such as an IRA. Another exception is if you sell a security and then wait more than 30 days to repurchase it.

Are there any other scenarios where the rule doesn't apply?

Yes, if you sell a security and then buy a different security that is not substantially identical, the wash sale rule does not apply. Additionally, if you inherit securities, the wash sale rule does not affect those transactions.

What should I do if I accidentally trigger the wash sale rule?

If you accidentally trigger the wash sale rule, you can adjust your tax basis for the repurchased security to reflect the disallowed loss. It's advisable to consult a tax professional for specific guidance.