Investor Glossary - Wash Sale RuleInsightful stock market charts - Click here

 # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z     

Wash Sale Rule


The wash sale rule is an IRS rule that prohibits investors from claiming a tax loss on the sale of an investment if the same investment was purchased within 30 days before or after the original investment's sale date. Investors should note that this 60 day period is calender days, not trading days. This period is referred to as the wash sale rule period. The intent of the wash sale rule is to discourage investors from selling at a loss simply to gain a tax benefit. The wash sale rule is also known as the 30 day wash sale rule. The wash sale rule may apply even if actual stock is not acquired. If the investor enters into a contract or an option to acquire stock, the terms of the wash sale rule are applicable.


               


Is the stock market headed lower? The answer may surprise you.
Find out now with the exclusive & highly regarded charts of Chart of the Day.


 Popular Terms : deferred revenue, forward PE, 401a, minority interest, deferred tax, retained earnings, trailing PE, average price per share, 144a, FICO score, real GDP, diluted share, wholly-owned subsidiary, net book value, cancelled check, debt service coverage, 1031 exchange, LIBOR, arm's length transaction, option premium, liquidity ratio, commodity, reverse mortgage, EBITDA, inflation, balance sheet, per diem, 1035 exchange, phantom income, Zero Cost Collar, assets under management, margin rate, covered put, required rate of return, Key Rate Duration, APR, current ratio, class C shares, quant, Russell 3000, stock, CUSIP, asset/equity ratio, Black Friday, annualize




 Rate the wash sale rule definition... Receive our free Term of the Day email.
 Your Rating:
 Poor 1 2 3 4 5  Excellent
Simply type in your email address and click submit:
 Comment:   
 


Subscribe   Unsubscribe
Home | Term of the Day | Tell a Friend | Suggest a Term | Edit Subscriber Detail
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2008 Investor Glossary - All rights reserved