The IRS has clarified how its “wash-sale” rule affects redemptions of shares in money market funds (MMFs) that maintain fixed share prices. In general, wash sales occur when investors sell securities at a loss and, within 30 days before or after that sale, buy the same securities. Under the IRS’s wash-sale rule, such investors can’t deduct their losses. But recent IRS guidance says that MMFs with fixed prices aren’t included in the wash-sale rule. So if a taxpayer claims a deduction for MMF shares sold at a loss but had bought shares of the same MMF within 30 days, the IRS won’t disallow the deduction, so long as the taxpayer follows other applicable rules.