When investing, sometimes you may sell your investments at a loss. There are potential benefits to this, namely being able to write off the losses on your taxes. However, if you have a wash sale, those losses would be disallowed, meaning you would not get the potential tax benefit. This rule has been in place for about 100 years and many investors don't fully understand it and it's easy to get inadvertently tripped up by it, especially if you reinvest dividends. In this episode, I break down the details of the wash sale rule, why it's important to understand and how to avoid triggering it. Enjoy!
Pick up a copy of Chase's book here: https://www.amazon.com/dp/1082783188
This podcast was recently named a top Early Retirement and Financial Independence Podcast by Feedspot! Check out the full list here (we are listed at #25): https://blog.feedspot.com/early_retirement_and_financial_independence_podcasts/
