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Wash-Sale Rule
(redirected from Wash Sale Rule)

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Wash-Sale Rule
An IRS regulation stating that one may not claim a capital loss for tax purposes if one repurchases the same position within 30 days. Suppose one sells a stock at a substantial loss but immediately buys back the same stock at the same price. Effectively, the locked in loss is "unlocked" and one can still make a profit on the investment in the long term. The 30 day wash-sale rule exists to prevent investors from taking tax deductions on losses they do not actually incur. Some investors find a way around this by exercising a tax swap. The 30 day wash-sale rule should not be confused with wash trading, which is a different concept altogether.
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For stock and other securities, you can just sell it and buy it back immediately because there's no wash sale rule for capital gains.
Higher 2011 rates may merit acceleration by The Business Owner
There are capital gains and losses, wash sale rules, long-term gains and losses, and a whole array of other rules when it comes to stocks and bonds.
Gilman Ciocia, Inc. Stresses Importance of a Mid-Year Tax Review by PR Newswire
108) See David Schizer, Scrubbing the Wash Sale Rules, 82 TAXES 67, 67 (Mar.
Naked and covered in Monte Carlo: a reappraisal of option taxation by Chason, Eric D. / Virginia Tax Review
 
 
 
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