A strategy used by investors to try to claim additional tax benefits. This is done by purchasing a stock via one broker and selling it via another broker within a short time period, and then claiming a loss on the sale. This strategy is not only illegal, but is also no longer effective due to the implementation of the 30-day wash rule.
Related information about wash sale:
- Wash sale - Wikipedia, the free encyclopedia
A wash sale (not to be confused with a wash trade) is a sale of a security (stock, bonds, options) at a loss and repurchasing the same or substantially identical ...
- Understanding the Wash Sale Rules - SmartMoney.com
Feb 8, 2012 ... Think twice before buying more shares of a stock you just sold at a loss. If 30 days haven't passed, your tax loss will be disallowed. Here's the ...
- The Wash Sale Rule
Top page in our explanation of the wash sale rule. The wash sale rule prevents you from claiming a loss on a sale of stock if you buy replacement stock within 30 ...
- Wash Sales
Mar 28, 2008 ... Under Internal Revenue Service rules, you cannot deduct losses from sales or trades of stock or securities in a wash sale. A wash sale occurs ...
- Wash Sale Definition | Investopedia
A transaction where an investor sells a losing security to claim a capital loss, only to repurchase it again for a bargain. Wash sales are a method investors ...
- Wash-Sale Rule Definition | Investopedia
An Internal Revenue Service (IRS) rule prohibiting a taxpayer from claiming a loss on the sale of an investment when the same investment was purchased within ...
- What is a Wash Sale? - TurboTax® Software Support
Nov 20, 2012 ... A wash sale is a sale where losses are not allowed because you recover your market position within a short time period.
- Wash Sale Rule - Tax Law Rule that Defers Capital Losses
A wash sale is selling an investment at a loss and repurchasing the same (or very similar) investment within a short period of time (30 days before to 30 days ...