wash sale


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wash sale

n.
The sale and repurchase of a security within a short period of time, especially in order to realize a loss that can be deducted from taxable income.

wash sale

n
(Stock Exchange) US the illegal stock-exchange practice of buying and selling the same securities at an inflated price through a colluding broker to give the impression that the security has a strong market
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The wash sale rule does not apply to cryptocurrency.
As long as the second fund does not hold the same bonds as the first fund, Doug won't have a wash sale.
G2 FinTech, the tax analysis software provider for investment managers said it will add to its TaxGopher engine a reporting tool for prospective wash sale purchases.
A taxpayer can use a wash sale to generate long-term capital gain treatment should the stock increase in value.
Wash Sale Rule: If you sell a stock or bond and then buy it (or something very similar) back within 30 days, IRS may take away any tax deduction you attempt to take: the "wash sale" rule.
It also includes guidance on how to convert paper losses into realized capital losses without triggering the wash sale rule and how to use the charitable contribution provisions to mitigate the current market's negative effects.
A wash sale results in the disallowance of a loss incurred from the sale of a security if a substantially identical security is acquired within a 61 -day period beginning 30 days before the sale and ending 30 days after the sale.
Because of automatic reinvestment, it is possible that a sale of fund shares at a loss can result in an unintended wash sale.
Watch for Wash Sales -- Under the Wash Sale Rule, investors who sell stock at a loss, but then buy a substantially identical security within 30 days before or after the sale, are not allowed to recognize that loss for tax purposes.
If the company is aware of the wash sale and seeks a compensation expense deduction, it will feel obligated to report W-2 income to the employee to secure its deduction [Reg.
The wash sale rule is grounded in the notion that losses should not be deductible in instances where, due to a prompt reacquisition of substantially, identical property, the taxpayer has not sufficiently altered his or her economic position.
GainsKeeper's enhanced short sale tax functionality automates the proper tax treatment of short sales, including special holding period rules and wash sale rules.