[1] Losses from such sales are not deductible in most cases under the Internal Revenue Code in the United States.
In the United Kingdom, a similar practice which specifically takes place at the end of a calendar year is known as bed and breakfasting.
Such losses are added to the basis of the newly acquired security, essentially deferring the tax benefits until a non-wash sale occurs, if ever.
[12] According to Forbes, "most brokers don't report wash sale (WS) loss calculations during the year".
[13] Wash sale rules can also be avoided by "not buying a security within 30 days of selling the same one or a similar one for a loss.