™30-second takeaway
Wash Sales Across Accounts, Spouses and IRAs, in one thought.
Understand why checking only one brokerage statement can miss important replacement purchases.
See how each idea connects before exploring the details below.
Put the idea into numbers.
You sell 100 shares for a $1,000 loss and buy 40 substantially identical shares 19 days later. A simplified taxable-account illustration potentially matches 40 shares and defers $400 of the loss into their adjusted basis.
Where understanding breaks down.
Checking only the account where the loss occurred. Replacement purchases through another broker, a spouse or an IRA may matter even when one Form 1099-B does not show the whole pattern.
Remember this.
Test the dates, investment identity, matched quantity, account type and basis treatment—then verify the result under current tax guidance.
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.
Use this as a foundation, then verify current rules and product details with primary sources and regulated providers before acting.
Primary sources and further reading
Verify the current tax rules.
Tax law, classifications and reporting requirements can change. Use current IRS guidance and a qualified tax professional for your circumstances.
Connect the concept
Go from explanation to application.
Continue with a related definition and an educational calculator that makes the numbers easier to see.