wash sale

noun

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

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

History and Etymology for 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

Keep scrolling for more

Learn More About wash sale

Dictionary Entries Near wash sale

war risk insurance

wash sale

waste

See More Nearby Entries 

Cite this Entry

“Wash sale.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/wash%20sale. Accessed 26 Sep. 2021.

Style: MLA
MLACheck Mark Icon ChicagoCheck Mark Icon APACheck Mark Icon Merriam-WebsterCheck Mark Icon

WORD OF THE DAY

Test Your Vocabulary

Dog Words Quiz

  • shiba puppy more or less demanding cuddles
  • Which of the following animals has a dog in its etymology?
True or False

Test your knowledge - and maybe learn something along the way.

TAKE THE QUIZ
Universal Daily Crossword

A daily challenge for crossword fanatics.

TAKE THE QUIZ
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!