Law Dictionary

wash sale

noun

Legal Definition of wash sale

  1. :  a sale and purchase of securities that produces no change of the beneficial owner; specifically :  a sale of securities within 30 days before or after the purchase of substantially identical securities

Additional Notes on wash sale

Any loss from such a sale is not deductible for most taxpayers under the Internal Revenue Code.

Origin and Etymology of wash sale

probably from the comparison of such a sale to the act of washing, which does not affect the nature of the thing washed


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