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A voo/spy wash sale can have negative implications on an investor's portfolio because it can result in disallowed tax deductions and potentially increase the investor's tax liability. This occurs when the investor sells a security at a loss and repurchases the same or substantially identical security within 30 days before or after the sale. The IRS considers this a wash sale and disallows the loss for tax purposes. This can reduce the investor's ability to offset gains and may lead to higher taxes owed.

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7mo ago

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