# Wash Sale Rule

*Taxes — Finicade finance glossary*

The wash sale rule disallows a capital loss if you buy a substantially identical security within 30 days before or after the sale. The loss isn't lost — it's added to the new position's cost basis and deferred. It applies across your accounts, including an IRA purchase, where the loss is permanently forfeited rather than deferred. Buying a different fund tracking a different index is the usual way to stay invested without triggering it.

**Also known as:** wash sale, bed and breakfasting rule

**Related terms:** [Tax-Loss Harvesting](https://finicade.com/glossary/tax-loss-harvesting), [Capital Loss](https://finicade.com/glossary/capital-loss), [Cost Basis](https://finicade.com/glossary/cost-basis), [Capital Gains Tax](https://finicade.com/glossary/capital-gains-tax), [Unrealized Gain](https://finicade.com/glossary/unrealized-gain)

Source: https://finicade.com/glossary/wash-sale-rule