wash sale

wash sale
wash sale n [probably from the comparison of such a sale to the act of washing, which does not affect the nature of the thing washed]: a sale and purchase of securities that produces no change of the beneficial owner; specif: a sale of securities within 30 days before or after the purchase of substantially identical securities
◇ Any loss from such a sale is not deductible for most taxpayers under the Internal Revenue Code.

Merriam-Webster’s Dictionary of Law. . 1996.

wash sale
n.
(1) A sale of stock followed by a purchase of the same stock within a short period of time, usually thirty days; losses on such a sale and repurchase may not be recognized for tax purposes.
(2) Simultaneous buying and selling of a stock issue to generate interest in the stock, forbidden by the Securities and Exchange Commission.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.


wash sale
The selling and repurchasing of an asset, usually stocks or bonds, within a very short time frame. People used to do this to realize a loss for tax purposes, but the IRS caught on and made such losses nondeductible for most taxpayers.
Category: Personal Finance & Retirement → Retirement Planning

Nolo’s Plain-English Law Dictionary. . 2009.


wash sale
The buying and selling of the same or a similar asset within a short period of time.
A fictitious type of arrangement whereby a broker, upon receiving an order from one individual to purchase and an order from another individual to sell a certain amount of a particular stock or commodity, transfers it from one principal to the other and retains the difference in value.

Dictionary from West's Encyclopedia of American Law. 2005.


wash sale
The buying and selling of the same or a similar asset within a short period of time.
 
A fictitious type of arrangement whereby a broker, upon receiving an order from one individual to purchase and an order from another individual to sell a certain amount of a particular stock or commodity, transfers it from one principal to the other and retains the difference in value.

Short Dictionary of (mostly American) Legal Terms and Abbreviations.

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