Understand tax-loss harvesting and the wash-sale rule: test your skills
Selling an investment at a loss can offset gains — but the wash-sale rule disallows the loss if you rebuy too soon. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Explain tax-loss harvesting
- Apply the 30-day wash-sale window
- Know its limits
- Practice
1. The wash-sale window covers…
- Practice
2. Tax-loss harvesting applies in…
- Practice
3. A disallowed wash-sale loss is…
- Key idea
4. Which statement best explains "Losses have a use"?
- Key idea
5. Which statement best explains "30 days both sides"?
- Key idea
6. Which statement best explains "Often a deferral"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
You sell at a $1,500 loss on 10 March. What is the first day you could rebuy the same fund without a wash sale?
Show the answer
10 April (31 days later)
March has 31 days. A purchase on 9 April is day 30 — still inside the window — so 10 April is the first safe day.
Write down the date 30 days after any planned loss sale, and pause automatic purchases of that fund until then.
More tests in this bootcamp
- Read tax brackets one layer at a time
- Tell a tax credit from a tax deduction
- Compare the standard deduction with itemizing
- Check sales tax before the receipt surprises you
- Keep the receipt records that matter at tax time
- Understand why holding time changes capital gains taxes
- Understand tax-loss harvesting and the wash-sale rule
- Plan for taxes as a W-2 employee or 1099 contractor
- Keep charitable giving records and understand the tax rules
- Know when your taxes need a professional
- Final exam: Taxes