Ask Terry Questions Reinvested dividends and the “wash” rule

Reinvested dividends and the “wash” rule

By Terry Savage on January 03, 2024 | Investments

I automatically reinvest all dividends (and capital gains). If this reinvestment occurs within 30 days of a captured loss, is that a violation of the “wash” rule?

Terry Says

No, it will not be impacted by the wash rule. That rule is designed to keep you from taking a loss, then reinvesting in the same stock to maintain your position — within 30 days.



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