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.

Word History


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

Dictionary Entries Near wash sale

Cite this Entry

“Wash sale.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/wash%20sale. Accessed 2 Dec. 2022.

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