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A wash sale is a sale of a security (stocks, bonds, options) at a loss and repurchase of the same or substantially identical security (judging by CUSIP or Committee on Uniform Securities Identification Procedures numbers) shortly before or after. [1]
A wash sale is when you sell an asset, such as a stock or bond, for a loss but have purchased the same asset or a very similar one within 30 days before or after the sale.
The investor can employ a number of techniques to avoid triggering the wash sale rule. The investor can wait 30 days to repurchase the security. [11] The investor can purchase a security that is similar to the original, but that does not meet the IRS's definition of "substantially identical".
Wash Sale Rule. The IRS defines something as a wash sale when you sell stock at a loss and then repurchase the stock within 30 days. Though it may be tempting to do this to cash in on some ...
To deter investors from selling their losing securities just to claim a quick tax deduction, the wash rule prevents investors from buying a substantially identical asset 30 days before or after ...
To qualify for Section 1031 of the Internal Revenue Code, the properties exchanged must be held for productive use in a trade or business, or for investment.Prior to 2018, stocks, bonds, and other properties were listed as expressly excluded by Section 1031, although securitized properties were not excluded.
Cottage Savings Association v. Commissioner, 499 U.S. 554 (1991), was an income tax case before the Supreme Court of the United States. [1]The Court was asked to determine whether the exchange of different participation interests in home mortgages by a savings and loan association was a "disposition of property" under § 1001(a) of the Internal Revenue Code (since this was the requirement for ...
8. The wash-sale rule does not apply to cryptocurrency. While the IRS treats cryptocurrency mostly as it does capital assets, it takes a totally different approach when it comes to wash sales. And ...