If I sell a stock for a loss to offset some gains, do I have to wait a certain period of time before I can rebuy that stock?

If I sell a stock for a loss to offset some gains, do I have to wait a certain period of time before I can rebuy that stock?

Yes. You can't deduct the loss if you buy the same stock within 30 days of selling it. You also can't deduct the loss if you purchased the stock within the past 30 days. It's called the "wash sale" rule.

If you think the stock will eventually rebound, it's a good idea to keep an eye on the calendar before buying it back.

The good news is that if you do buy the stock back within 30 days, you don't lose the loss forever. A loss denied by the wash-sale rule is added to the cost basis of the newly purchased shares. That will lower your tax bill when you eventually sell the repurchased shares.

All is not lost if you can't wait the 30 days. For example, say you bought 100 shares of Acme stock for $2,000 and sold them for $1,500. Less than 30 days later, you think Acme stock is poised for a take-off and you can't wait any longer to buy 100 shares at $1,600. You can't deduct the $500 loss in the year of the wash sale, but you can add it to your basis. When you finally sell Acme stock, your gain or loss would be calculated using an adjusted basis of $2,100 ($1,600 plus $500).