The wash sale provisions apply to which of the following?
I.Tom realizes an $8,000 loss on the June 17,2017,sale of 650 shares of Roadrunner Corporation common stock.He replaces the 650 shares with Hawke Inc. ,stock on July 8,2017.
II.Rosie realizes a $6,000 loss on the December 29,2016,sale of 40 Billings corporate bonds.Each bond has a face value of $1,000.She replaces the Billings corporate bonds with 30 Redeemer corporate bonds,each with a face value of $1,000 on January 16,2017.The Redeemer bonds have the same interest rate,maturity date,but a different bond rating (AAA)as the Billings bonds.

Question

The wash sale provisions apply to which of the following?
I.Tom realizes an $8,000 loss on the June 17,2017,sale of 650 shares of Roadrunner Corporation common stock.He replaces the 650 shares with Hawke Inc. ,stock on July 8,2017.
II.Rosie realizes a $6,000 loss on the December 29,2016,sale of 40 Billings corporate bonds.Each bond has a face value of $1,000.She replaces the Billings corporate bonds with 30 Redeemer corporate bonds,each with a face value of $1,000 on January 16,2017.The Redeemer bonds have the same interest rate,maturity date,but a different bond rating (AAA)as the Billings bonds.
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Quizplus · Accepted Answer

The wash sale rule applies when a taxpayer sells a security at a loss and repurchases a substantially identical security within 30 days. In both scenarios, the securities purchased are not substantially identical to those sold.

The Wash Sale Provisions Apply to Which of the Following