Understanding Tax Terms: Wash Sales – Surprise! Your stock loss is not deductible.
Understanding Tax Terms If selling a stock or mutual fund to book a loss for your tax return, the Wash Sale rules are worth knowing. For the unaware, this rule could cost you your loss deduction. As you look for year-end tax moves to save on your bill from Uncle Sam, you may consider selling stocks that have lost value. This can be a great strategy when up to $3,000 in stock losses can offset your ordinary income. However, there is a little known rule called the Wash Sale rule that could surprise the unwary taxpayer. Wash Sales If the