Investment

Wash Sale

A securities transaction in which an investor sells a security at a loss and repurchases a substantially identical security shortly before or after, typically to claim a tax loss. Often disallowed by tax authorities.

Quick answer: A securities transaction in which an investor sells a security at a loss and repurchases a substantially identical security shortly before or after, typically to claim a tax loss. Often disallowed by tax authorities.

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Quick answer

A securities transaction in which an investor sells a security at a loss and repurchases a substantially identical security shortly before or after, typically to claim a tax loss. Often disallowed by tax authorities.

Why it matters

Wash Sale matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Editorial context

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Questions and answers

Questions and answers

What is Wash Sale?

In this glossary, Wash Sale refers to: A securities transaction in which an investor sells a security at a loss and repurchases a substantially identical security shortly before or after, typically to claim a tax loss. Often disallowed by tax authorities.

How is Wash Sale used in finance?

In finance communication, this term appears in contexts such as: "IRS melarang pengurangan pajak dari wash sale jika sekuritas dibeli kembali dalam 30 hari."

Why does Wash Sale matter in finance?

Wash Sale matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Who uses Wash Sale?

Wash Sale is mainly used by Financial Analysts, Bankers, and Traders.

What category does Wash Sale belong to?

In this glossary, Wash Sale is grouped under Investment. Related pages in this category explain adjacent procedures, commands and operational concepts.

Where does this definition come from?

This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.

Definition

A securities transaction in which an investor sells a security at a loss and repurchases a substantially identical security shortly before or after, typically to claim a tax loss. Often disallowed by tax authorities.

Operational example

The IRS disallows tax deductions for losses resulting from a wash sale if the same security is repurchased within 30 days.

Localized term

Wash Sale

Localized example

IRS melarang pengurangan pajak dari wash sale jika sekuritas dibeli kembali dalam 30 hari.

Definition language

English reference definition

Source

CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

Category

Investment

Exam relevance

  • CFA
  • ACCA
  • FRM

Target audience

  • Financial Analysts
  • Bankers
  • Traders

Related terms

Use the related links below to continue through connected finance terminology.

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