wash sale

Definition of "wash sale"
  1. 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
How to use "wash sale" in a sentence
  1. John was advised against creating a wash sale as it would not be tax-deductible.
  2. The IRS is vigilant about tracking wash sales to prevent tax evasion.
  3. Despite selling his stocks, the quick repurchase led to a wash sale, providing no tax advantage.

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