Tax-Loss Harvesting Before December 31: The 61-Day Wash-Sale Rule That Can Erase Your Deduction
Selling at a Loss Is Easy. Keeping the Tax Benefit Is the Hard Part. A 61-day rule can decide whether a loss you harvest before December 31 is allowed, and 30 of those days come before you sell. Harvesting can turn a loss into a potential tax benefit, but buying a substantially identical security inside that window can disallow it. If you sell at a loss on December 10, for example, your window runs from November 10 through January 9 . This guide is about losses only: stocks and ETFs held in U.S. taxable brokerage accounts. It is not a general year-end tax overview, and selling before December 31 does not automatically produce a tax benefit. Whether a loss helps depends on the wash-sale rule, your other capital gains and losses, and the annual limits covered below. Everything here is general educational information, not individualized tax advice. Four Numbers to Know Before You Harvest a Loss Number What it measures 61 days Total wash-sale window, sale date included: 30 days b...