How the Wash Sale Rule Traps Active Traders in 2026

What this episode covers

Lucas and Luna unpack the wash sale rule — one of the IRS's most misunderstood tax traps for active traders and investors. Using a concrete example of a trader who sells NVIDIA at a loss, then buys back within 30 days, they explain how the rule disallows the tax loss and defers it into the replacement shares. They cover the 61-day window, how it applies across accounts (including IRAs), and why it matters for tax-loss harvesting strategies in 2026. Lucas highlights a 2023 Tax Court case that caught a day trader off guard, and Luna shares a real-world story of a friend who accidentally triggered wash sales by using auto-invest. No jargon, no scare tactics — just a clear walkthrough of a rule that costs investors billions in disallowed losses each year. If you've ever sold a stock at a loss and bought it back within a month, this episode is for you. #WashSaleRule #TaxLossHarvesting #ActiveTrading #IRSTaxTips #CapitalLosses #NVDA #TaxCourt #InvestorMistakes #TaxStrategy #Finance #FexingoBusiness #BusinessPodcast #TaxSeason #StockMarket #DayTrading #PortfolioManagement #LossDisallowance #TaxPlanning2026 Keep every episode free: buymeacoffee.com/fexingo

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