wash sale
- A quick sell and repurchase of the same asset, typically stocks or bonds, often done to create an artificial tax loss, which is mostly non-deductible
- John was advised against creating a wash sale as it would not be tax-deductible.
- The IRS is vigilant about tracking wash sales to prevent tax evasion.
- Despite selling his stocks, the quick repurchase led to a wash sale, providing no tax advantage.
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