What happens to a wash sale loss when a person dies?

The wash sale rules bar an individual from recognizing a loss from the sale of securities if substantially identical ones are purchased within 30 days before or after the date of sale. The loss becomes part of the basis of the replacement securities. If a person is married when there’s a wash sale and dies, the surviving spouse can buy back the securities after the wash sale period if they are a good investment. This will adjust the basis of the new securities, eventually benefiting the surviving spouse upon a future sale. But if the person is single, the loss is lost. It cannot be taken on a final return or by the person’s estate.