The IRS defines a wash sale as a sale of stock or securities at a loss within 30 days before or after you buy or acquire in a fully taxable trade, or acquire a contract or option to buy, substantially identical stock or securities.  

A wash sale occurs if you realize a loss on the sale of the security, and then buy a "substantially identical" replacement stock within the 61-day period, and the loss is deferred until the replacement shares are sold.

Commodity futures contracts are not considered stock or securities and are not covered by the wash sale rule; however, any straddle position acquired after June 23, 1981 is subject to the rule. 

For further information on the wash sale rule, refer to IRS Publication 550, Investment Income and Expenses, the instructions to Schedule D (Form 1040), and consult your tax advisor.

In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer.