Investor Glossary-wash saleInvestor Glossary-wash saleInvestor Glossary-wash saleInvestor Glossary-wash saleInsightful stock market charts - Click here
investor
Categories    # 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

The HTML to link to this page
 

A wash sale occurs if an investor sells a stock at a loss and replaces the sold security with a virtually identical security within 30 days before or after the original stock's sale. The Internal Revenue Service prohibits investors from claiming a tax loss on a wash sale. The purpose of wash sale restrictions is to discourage investors from selling stock merely to claim a tax deduction. The wash sale period for tax purposes consists of the day of the sale, 30 days before, and 30 days after the sale. To avoid triggering wash sale rule consequences and eliminating a potential tax deduction on a stock sale, investors should avoid purchasing the same stock during the wash sale period. If the stock sale occurs March 31, the wash sale period includes all of March and April.



Rate this wash sale definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: limit order, EBITDA, reverse mortgage, per diem, balance sheet, APR, option premium, cancelled check, required rate of return, debt service coverage, covered put, wholly-owned subsidiary, Key Rate Duration, dividends payable, liquidity ratio, deferred revenue, labor relations, quality assurance, diluted share, margin rate, 144a, inflation, ex-dividend, in escrow, risk management, retained earnings, deferred tax, FICO score, 401a, stock split, 1035 exchange, phantom income, command economy, FTSE, minority interest, irrevocable trust, VIX, stock market close, average price per share, Zero Cost Collar, open position, 1031 exchange, current ratio, ex-dividend date, implied volatility, annual return, real GDP, LIBOR, class C shares


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use