What are the tax implications of a wash sale on capital gains?

A wash sale occurs when you sell a security at a loss and then repurchase the same or substantially identical security within 30 days. The tax implications of a wash sale on capital gains are that the loss from the sale cannot be immediately deducted for tax purposes. Instead, the disallowed loss is added to the cost basis of the repurchased security, which can affect the amount of capital gains or losses when the security is eventually sold.