When a taxpayer realizes a loss on the sale of securities and purchases the same or substantially identical securities within 61 days surrounding the date of the sale, this is known as:
A) a related-party transaction.
B) a wash sale.
C) a basket purchase.
D) none of the above.

Question

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When a taxpayer realizes a loss on the sale of securities and purchases the same or substantially identical securities within 61 days surrounding the date of the sale, this is known as a wash sale

When a Taxpayer Realizes a Loss on the Sale of Securities