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Are losses on wash sales tax deductible?

No. A wash sale can arise from the sale of investment property and is subsequently repurchased by the original seller. The criteria for a wash sale will generally be that the sale will have been made and repurchased within 30 days before or after the sale date. If a taxpayer sells stock or securities that results in a realized loss and the taxpayer subsequently requires substantially identical stock or securities within 30 days before or after the date of the sale, the loss will be disallowed.


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