I think it’s a little nuanced than that. In your example if trade activity is ceased 30 days prior to tax reporting then the tax liability is only $1M. If sto

I think it’s a little nuanced than that. In your example if trade activity is ceased 30 days prior to tax reporting then the tax liability is only $1M. If stock B got stuck in the wash rule then you are on the hook for the complete $10M. Then the difference becomes business loss vs personal loss. On your personal taxes you cannot deduct that $9M liability all at once unless you have other capital gains to cover it. you can roll it forward a few years but that’s a massive loss most will likely never be able to gain from. Businesses can deduct 100% of losses against taxable income with the potential of triggering an audit at certain thresholds This is my poor understanding of wash sale rules wrt the IRS