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Tax Glossary: Wash Sale

Posted by McDonald & Osborne Posted on Oct 13 2015

Wash Sale : The sale of stocks, bonds or mutual fund shares for a loss when, within 30 days before or after that sale, you buy the same or substantially identical securities. The law forbids the deduction of the loss, but the denied loss is added to the cost basis of the new shares which will result in a smaller gain or larger loss when those shares are ultimately sold.