A wash sale occurs when an investor sells or trades a security at a loss, and then that investor, their spouse, or a company the investor controls purchases an identical or very similar security within 30 days. The IRS’s wash-sale rule prevents a taxpayer from using a wash sale to take a tax deduction. Plenty's tax-loss harvesting algorithm automatically finds securities that are dissimilar enough from the initial security that they do not violate the wash-sale rule.

Please note that tax-loss harvesting is only available when using a Premium portfolio. There's no extra fee for using a Premium portfolio, but they are only available for Joint Goals.

For Plenty's disclosures on tax loss harvesting and wash sales, please see Plenty's general disclosures here.