What is a stock wash sale?

Answer A wash sale is a complicated provision that disallows capital losses when certain trading circumstances occur. Wash sales occur most often with active stock traders.Stock SharesStock shares represe... Read More »

Top Q&A For: What is a stock wash sale

What is the wash sale rule?

On your income taxes, the Internal Revenue Service allows you to write off losses on stock sales to offset your capital gains. However, the IRS limits what you can write off if you buy back the sto... Read More »

What is a wash sale rule?

Wash sales are sales of the same or similar or stock and then replacing the stock within a certain time frame.Similar StockSimilar stock includes stock the is substantially the stock either through... Read More »

What is the tax basis of stock on sale?

The tax basis of stock depends on a number of factors. It's extremely important because the amount of the tax basis will determine how much tax you'll pay. The amount of sale minus the cost---which... Read More »

What is a short sale of a stock?

When an investor believes that the price of a stock is going to fall, he can attempt to profit by executing a "short sale." Reversing the age-old investment advice of "buy low, sell high," in a sho... Read More »