To keep people from generating a long string of capital losses by repeatedly buying and selling the same stock, the IRS has developed "wash sale rules,' which limit these losses. This video defines wash sales, shows how the rules are applied, and tells you how to recognize and report them on your tax return.

0:00 Introduction
0:32 What "Wash Sales" are
2:00 How the Wash Sale rules work
3:35 Reporting Wash Sales on the tax return
4:35 Conclusion

To learn more about reporting capital gains and losses on Schedule D, click here:    • Capital Gains - Putting it all Togeth...  

To learn more about capital gains, click here:    • What is a Capital Gain? (and how are ...  
and capital losses, click here:    • Capital Losses and how they affect yo...  

For a deeper dive into brokerage statements, click here:    • How to interpret a brokerage statemen...  

Additional Information and Resources:

IRS Publication 550: "Investment Income and Expenses": https://www.irs.gov/pub/irs-pdf/p550.pdf

IRS Form 8949: "Sales and Other Dispositions of Capital Assets": https://www.irs.gov/pub/irs-pdf/f8949...

IRS Schedule D: "Capital Gains and Losses": https://www.irs.gov/pub/irs-pdf/f1040...

investopedia.com: "Wash Sale Rule: What Is It, Examples, and Penalties": https://www.investopedia.com/terms/w/...

The Tax Geek on Twitter: www.twitter.com@taxgeekusa

The Tax Geek on Reddit: www.reddit.com/r/askataxgeek

Image/Video Sources:

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Intro Music: "Bluesy Vibes" - Doug Maxwell - YouTube Audio Library

Outro Music: "Modern Attempt" - Track Tribe via YouTube Audio Library

DISCLAIMER: This video is for educational and informational purposes only. It is not intended to render tax advice or financial advice for individual situations. If you have questions regarding your particular situation, please consult with a qualified tax or financial professional.

The information in this video is current as of date of publication, and is subject to changes.