30-day wash rule


IRS rule forbidding 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. The purpose of the rule is to discourage investors from selling at a loss just to get the tax benefit. also called 30-day wash sale rule.

Use 30-day wash rule in a sentence

You may want to try and make sure that you do not do anything that will have you facing the 30-day wash rule.

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The IRS took notice of the 30-day wash rule when going undercover to find out if the stock brokers firm were doing unlawful practices.

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For year end tax planning we opted to sell a few securities for which we had unrealized losses but intend on repurchasing them late January so as not to run afoul of the 30-Day Wash Rule.

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25% rule wash sale