Wash Sale - Consequences of A Wash Sale

Consequences of A Wash Sale

In USA, the wash sale rule has the following consequences:

  1. The taxpayer is not allowed to claim the loss on the sale.
  2. Basis Adjustment: The disallowed loss is added to the basis of the replacement stock.
  3. Holding Period: The holding period for the replacement stock includes the holding period of the stock you sold.

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