Wash sales, where substantially identical securities are bought and sold within a 30 day window, generate no recognized deductible tax losses, per Section 1091. But IRS fails to go through the brokerage statement to verify if any of the losses claimed by Juan Carlos Wandemberg Boschetti, Docket No. 11045-24S, filed 7/9/25, were in fact generated from wash sales.

So Juan Carlos gets the Section 165(f) loss, as limited by Section 1211(b) to $3000. He does have to pick up the $85K in wages he didn’t report, claiming he folded them into his stock market losses (which he surely had but can’t deduct more than $3K thereof in year at issue); IRS magnanimously folds the chops.

Juan Carlos fails to articulate why the $3K limit is unconstitutional as he claims, and STJ Diana L. (“Sidewalks of New York”) Leyden can’t find any reason.

Juan Carlos does get a Taishoff “Good Try, Novelty Division.”