Mr. and Mrs. Smith purchased 100 shares of stock for $45 per share on June 30, 2011. On March 30, 2016, the Smith family decides to sell these shares for $30 generating a loss of $15 per share. On April 15, 2016, the Smith family realized they made a mistake and repurchased 100 shares for $35 per share. Can the Smith family deduct a long-term or short-term capital loss from the sale on March 30, 2016? If not, will the Smiths ever receive a tax benefit for their loss?

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The Answer of Mr. and Mrs. Smith purchased 100 shares of stock for $45 per share on June 30, 2011. On March 30, 2016, the Smith family decides to sell these shares for $30 generating a loss of $15 per share. On April 15, 2016, the Smith family realized they made a mistake and repurchased 100 shares for $35 per share. Can the Smith family deduct a long-term or short-term capital loss from the sale on March 30, 2016? If not, will the Smiths ever receive a tax benefit for their loss?

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