A wash sale occurs when you sell a security at a loss, then purchase it or something similar back again during the 60 day wash period (30 before and 30 after the sale). When this happens, the loss deduction on that sale is dissallowed permanently, it is not carried over to future periods. You can only recognize the loss when you sell the security aquired in the wash sale later on and don't re-invest the proceeds back by purchaseing the same or similar security within the 60 day wash period.
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