Wash sale overview

A wash sale happens when a client sells an investment for a loss and purchases it within 30 days of the sale. When this happens, the loss is (or at least should be) disallowed by the IRS, which can impact the client’s end-of-year tax bill.

Symplany’s default trading logic avoids wash sales when possible*.

That being said, an advisor can initiate a trade in an FLD account that may trigger a wash sale. When this happens, Symplany displays a warning message prior to confirming the trade.

There are two steps an advisor can take to reduce the likelihood of a potential wash sale trade:

1. Only open one non-qualified (NQ) account for each household (Tip: Rather than open multiple NQ accounts, take advantage of the multi-bucket feature).
2. Use an investment strategy in your NQ account that holds funds which do not overlap with funds in other accounts.

*To learn more about wash sales, click here.