With this dodge your capital gain is merely deferred, not escaped forever.

FORBES: Stupid Tax Tricks

Often, when a wash sale loss is triggered, it goes away when the trader sells replacement positions at a large enough gain to absorb the deferred wash sale losses.

FORBES: Who Can't Count, The IRS Or Your Broker?

Either way, the assets grow tax-deferred and withdrawals are taxed as ordinary income, not capital gain.

FORBES: IRA Tips and Traps