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This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

Content is the opinion of the author and does not represent the position of any other person or entity. Information is from sources believed to be reliable but cannot be guaranteed.

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Wash sales rules

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If in doubt, please send a new question or ask for an update.

Q: Does the "wash sale" rule prevent me from buying a stock back right after I sell it?

A: No, you may buy and sell a stock as often as you wish. For tax reporting purposes, however, this quick sale/buy back is not counted so the tax is calculated as if you had continuously owned the stock. This rule comes into question more often at the end of the year when investors try to realize tax-deductible losses or lock in low long term capital gains rates without really altering the makeup of their investment portfolio.


More resources:

Instructions for IRS Form 1040 Schedule D