U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Wash Sales

Under Internal Revenue Service rules, you cannot deduct losses from sales or trades of stock or securities in a wash sale. A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you:

Buy substantially identical stock or securities,

Acquire substantially identical stock or securities in a fully taxable trade, or

Acquire a contract or option to buy substantially identical stock or securities.

For more information about wash sales, read IRS Publication 550, Investment Income and Expenses (Including Capital Gains and Losses).

http://www.sec.gov/answers/wash.htm

We have provided this information as a service to investors.  It is neither a legal interpretation nor a statement of SEC policy.  If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law.


Modified:03/28/2008