wash sale rule


IRS rule prohibiting a taxpayer from claiming a loss on the sale of an investment if that same investment was purchased within 30 days before or after the sale date. also called 30-day wash rule.

Use wash sale rule in a sentence

You may want to make sure that you are not ever doing anything that may be seen as breaking the wash sale rule.

​ Was this Helpful? YES  NO 5 people found this helpful.

While he wanted to claim a loss on his stocks, he was unable to do since not much time had passed since he'd purchased them and the wash sale rule was in place.

​ Was this Helpful? YES  NO 4 people found this helpful.

The investor wanted to take a tax loss by selling his stock that was down, but he knew he had to wait 30 days before buying it again, or lose the tax loss under the wash sale rule.

​ Was this Helpful? YES  NO 2 people found this helpful.

Show more usage examples...

Related Terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
wash sale pairoff