Skip to main content

Wash Sale Rule

An Internal Revenue Service (IRS) policy that forbids a taxpayer from claiming a tax deduction for a loss on a securities sold in a wash sale. A wash sale is one that takes place when a person sells or trades an asset at a loss and then purchases the same stock or security, or obtains a contract or option to do so, within 30 days before or after the sale. The purpose of the wash-sale rule is to discourage individuals and corporations from making an investment loss in order to claim a tax deduction while effectively keeping their stake in the securities.

Popular posts from this blog

Could Oracle Become the Next Microsoft?

JPMorgan Chase Faces Investor Disappointment Despite Strong Q1 Performance

Netflix Crushes Subscriber Targets but Misses on Revenue Forecast