A taxpayer who realizes a loss on the sale of marketable securities and reacquires substantially the same securities within the 30 day period before the sale cannot recognize the loss.

Question

Quizplus · Accepted Answer

This is known as the "wash sale" rule, which disallows the recognition of a loss for tax purposes if the same or substantially identical securities are repurchased within 30 days before or after the sale.

A Taxpayer Who Realizes a Loss on the Sale of Marketable