A wash sale occurs when:
A)A taxpayer sells and buys substantially identical stock.
B)A taxpayer sells stock and buys substantially identical stock within 30 days before or after the sale.
C)A taxpayer sells stock and buys substantially identical stock within 60 days before or after the sale.
D)When a taxpayer sells stock at the end of the year to offset a gain recognized earlier in the year.

Question

Quizplus · Accepted Answer

A wash sale occurs when a taxpayer sells stock and buys substantially identical stock within 30 days before or after the sale. This is done in order to create a loss for tax purposes, but the IRS does not allow these losses to be claimed if the same stock is repurchased too soon.

A Wash Sale Occurs When