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.
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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)
“Yet for all that, there is nothing in me of a founder of a religion—religions are affairs of the rabble; I find it necessary to wash my hands after I have come into contact with religious people.”
—Friedrich Nietzsche (1844–1900)
“People buy their necessities in shops and have to pay dearly for them because they have to assist in paying for what is also on sale there but only rarely finds purchasers: the luxury and amusement goods. So it is that luxury continually imposes a tax on the simple people who have to do without it.”
—Friedrich Nietzsche (1844–1900)