IRS Cracks Down on Wash Sale Gambit

When an investor takes a loss, the loss will not be deductible from realized gains or other income if the investor purchases the same security within thirty days. That's the wash-sale rule.

OK. But I can still deduct the loss I realize in my taxable portfolio if I immediately repurchase the security through my Roth IRA, right?

Wrong, says the IRS. You can read the IRS reasoning here.