Legal Definition of wash sale
: 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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Dictionary: Definition of wash sale
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