™Stock Market University · Research, Taxes & Investor Operations
Wash Sales Across Accounts, Spouses and IRAs
Understand the idea. See the connections.
Understand why checking only one brokerage statement can miss important replacement purchases.
The idea to understand
Map replacement activity across accounts and understand why IRA replacements can receive especially unfavorable treatment.
The explanation
The essentials, explained.
Follow the idea, then work through an example. Pause at the self-check whenever you are ready.
Look beyond one taxable account
A purchase through another broker can still be relevant. Reviewing only the account where the loss occurred may not reveal all substantially identical acquisitions.
A spouse’s purchase can count
IRS Publication 550 states that the rule can apply when a spouse acquires substantially identical stock or securities inside the period. Household-level coordination can therefore matter.
IRAs can create a harsher outcome
Under IRS Revenue Ruling 2008-5, a loss can be disallowed when substantially identical stock or securities are acquired in an IRA or Roth IRA within the wash-sale period. The IRA’s basis is not increased by the disallowed loss, so the usual taxable-account deferral mechanism does not apply.
Broker reports may not show the full picture
A broker may not know what happened in a spouse’s account, an IRA or another institution. Consolidated records and qualified tax guidance become especially important when accounts overlap.
Optional context & practice
Why this matters
One broker cannot see every relevant acquisition. Retirement-account replacement can have materially different loss and basis consequences.
Useful vocabulary
Individual retirement account (IRA): A US retirement account arrangement with eligibility, contribution, distribution and tax rules that depend on its type and circumstances. Wash sale: A U.S. tax rule that can disallow a current loss when substantially identical stock or securities are acquired within the specified window. Adjusted basis: An investment’s original tax basis after required increases or decreases, including certain wash-sale adjustments.
Reporting scope is narrower than the taxpayer's review
A broker's required wash-sale reporting generally does not consolidate every broker, spouse or retirement-account transaction. Publication 550 and Revenue Ruling 2008-5 describe issues that can extend beyond one taxable account. Related-party loss rules may also matter. A child's or other person's account should not be assumed automatically equivalent to a spouse's or the taxpayer's IRA; ownership and applicable rules require analysis.
Try it with a hypothetical example
Compare relevant account activity across institutions and a spouse, then read IRS guidance and Revenue Ruling 2008-5 before assuming a taxable basis adjustment.
A question to think through
A 1099-B shows no wash-sale adjustment. Does that prove a loss is fully deductible after a replacement at another broker?
Compare your reasoning
No. Reconcile the complete relevant history; the reporting form may not capture the cross-account transaction.
A moment to reflect · optional
Why is an IRA replacement more serious than a typical taxable-account replacement?
Think through your answer, then compare it with the explanation.
Reveal the explanation
The disallowed loss may not be preserved through a basis increase in the IRA.
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Sources & editorial notes
Reviewed 2026-10-13 · My Market Book editorial team. Examples are hypothetical unless identified as historical. General education, not a personal investment recommendation. Next scheduled review: 2026-11-12, or earlier after a material change. Rule and product sensitive.