Your Ask Joey ™ Answer

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.

Back To All Questions

You might also be interested in...

  • Discontinued Operations on the FAR CPA Exam

    Overview of Discontinued Operations In financial reporting, discontinued operations refer to a component of a company’s core business or product line that have been divested or shut down. Discontinued operations will be reported (net of tax) separately from continuing operations on the income statement. The reason that discontinued operations are reported separately is so that...

  • Equity Method Excel Workbook

    If you would like to use the Excel workbook that was used to create the Universal CPA lecture on the equity method, please click the link below to download the Excel workbook: Equity Method Lecture Example

  • How Hard is the CPA Exam?

    So you’re thinking about taking the CPA exam? Whether you have a dream of becoming a tax advisor, feel as though you need public accounting experience, or just want to solidify your business acumen, the CPA license is one of the most prestigious and well respected licenses in the business world. The exam itself is...