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


Learn More about wash sale


Seen and Heard

What made you want to look up wash sale? Please tell us where you read or heard it (including the quote, if possible).

Love words? Need even more definitions?

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

WORD OF THE DAY

not embarrassed or apologetic

Get Word of the Day daily email!

WORD GAMES

Take a 3-minute break and test your skills!

  • winning-words-from-the-national-spelling-bee-logo
  • Which is the correct spelling of the winning word from 1988?
True or False

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

TAKE THE QUIZ
SCRABBLE® Sprint

Test Your Knowledge - and learn some interesting things along the way.

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!