Purchase and sale of a security either at the same time or within a short period of time. Wash Sales taking place within 30 days of the underlying purchase do not qualify as tax losses under IRS rules.

The illegal purchase or repurchase of an asset within 30 days of the sale date of a basically identical asset that was sold in order to take a tax loss. For example, if an investor sold a security at a loss and then immediately repurchased the same security or a basically identical security, the Internal Revenue Service would consider the transaction a wash sale. An illegal trade in which no change in ownership takes place.

a type of fictitious sale

A tax term for the purchase of securities (or options to purchase those securities) within 30 days before or after a sale of substantially the same securities. A loss from selling the original securities may not be deductible for income-tax purposes.

Is the sale of a security or instrument and the subsequent purchase with no economic interest. It can be motivated by tax or reporting purposes. It is generally deemed to be a sham transaction. It can also be construed as creating fictitious trading activity.

Used in the context of general equities. Purchase and sale of a security either simultaneously or within a short period of time, often done with the intention of recognizing a tax loss without altering one's position. See: tax selling.

When someone sells stock or securities at a loss and, within 30 days before or after the sale, buys, in a fully taxable trade, substantially identical stock or securities.

A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you: (1) buy substantially identical stock or securities, (2) acquire substantially identical stock or securities in a fully taxable trade, or (3) acquire a contract or option to buy substantially identical stock or securities. You cannot deduct losses from sales or trades of stock or securities in a wash sale.

The purchase and sale of a security, such as a mutual fund, which occur simultaneously or within a short period of time of each other. Wash sales occurring within 30 days of the original purchase do not qualify as a capital loss according to IRS rules.

Strategy in which a security is bought back within 31 days after it is sold, "washing out" any capability of writing off losses on income taxes.

The purchase of substantially similar stock or other securities within 30 days before or after the sale of the similar stock or security at a loss. A taxpayer cannot claim a wash sale loss; instead, the loss is added to the basis of the most recently purchased substantially similar securities.

The purchase of stock 30 days before or after the sale of similar stock at the loss. Losses from wash sales are not deductible.

(1) For regulatory purposes - the purchase and sale of the same security at the same time and price without any change of ownership. This practice is outlawed under Section 10 of the Securities Exchange Act of 1934. (2) For tax purposes a sale at a loss and repurchase of the same, or a similar, issue within thirty days before or after intending to use that loss to offset capital gains or taxable income in that year. The loss is generally not allowed as a tax deduction under the 1954 Tax Code.

The selling and repurchasing of an asset, usually stock, within a very short time frame. People used to do this to realize a loss for tax purposes, but the IRS caught on and made such losses non-deductible for most taxpayers.

Purchase and sale of a security either simultaneously or within a short period of time, often in order to recognize a tax loss without altering one's position. See: Tax selling.

An illegal transaction an investor makes by simultaneously buying and selling a security through two different brokers, thereby creating the illusion of activity.

Transactions that give the appearance of purchases and sales but which are initiated without the intent to make a bona fide transaction and which generally do not result in any actual change in ownership. Such sales are prohibited by the Commodity Exchange Act.

When an investor buys substantially identical securities as those he sold within the last or next 30 days, the sale of these securities can not be used as a realized loss for income tax purposes. For example, you sell your 100 AAA shares on October 1 for a loss of $1000. Then you buy 100 new shares of AAA on October 10. You sell these new shares on December 12 for a $2000 realized gain. On your tax return, you must show a net realized gain of $2000. The wash sale ($1000 loss) is disallowed as an offset against the gain for income tax purposes. Top of 'W'

A security that is bought or sold, either concurrently or within a short period of time, to create artificial market activity to profit from a rise in the security's price. • The sale of a security and then the repurchase of shares within 30 days. The Internal Revenue Service (IRS) automatically disallows any losses for tax purposes. The IRS also extends the wash sale prohibition to closing short sales.

Wash Sale is a sale of a security (stock, bonds, options) at a loss and repurchase of the same or substantially identical stock 30 days before or after the sale, for which the capital loss is disallowed for tax deduction. Since the taxpayer is in the same economic position before and after the sale, the loss is not recognized for tax purposes. The disallowed loss is added to the basis of the newly acquired security.