Identifying A Wash Sale
In the USA wash sale rules are codified in "26 USC ยง 1091 - Loss from wash sales of stock or securities."
Under Section 1091, a wash sale occurs when a taxpayer sells or trades stock or securities at a loss, and within 30 days before or after the sale:
- Buys substantially identical stock or securities.
- Acquires substantially identical stock or securities in a fully taxable trade,
- Acquires a contract or option to buy substantially identical stock or securities, or
- Acquires substantially identical stock for your individual retirement account (IRA) or Roth IRA.
Read more about this topic: Wash Sale
Famous quotes containing the words identifying, wash and/or sale:
“And the serial continues:
Pain, expiation, delight, more pain,
A frieze that lengthens continually, in the lucky way
Friezes do, and no plot is produced,
Nothing you could hang an identifying question on.”
—John Ashbery (b. 1927)
“Droplets of rain can soak through your clothes; goblets of wine can wash away your wealth.”
—Chinese proverb.
“[T]he dignity of parliament it seems can brook no opposition to it’s power. Strange that a set of men who have made sale of their virtue to the minister should yet talk of retaining dignity!”
—Thomas Jefferson (1743–1826)