Definition of "Wash sale rule"

Ulrick Germain real estate agent
Ulrick Germain, Real Estate Agent Charles Rutenberg Realty

Rule concerning stock sold and then repurchased or a similar security repurchased (warrants or options) within 30 full days before or after the day of the sale. Losses established from such a sale cannot be used to offset capital gains for tax purposes; however, this disallowed loss is not lost forever, as it can be added to the cost basis of the repurchased security for tax purposes.

Have a question or comment?
We're here to help.

*** Your email address will remain confidential.


Popular Insurance Terms

Popular Insurance Questions