Realized losses from the sale or exchange of stock are disallowed if within 30 days before or 30 days after the sale or exchange, the taxpayer acquires substantially identical stock.

Question

Quizplus · Accepted Answer

This is known as the "wash sale" rule and is designed to prevent taxpayers from claiming an artificial loss by selling stock at a loss and then immediately buying back similar stock.

Realized Losses from the Sale or Exchange of Stock Are