Watch out for “wash sales” on stocks

Posted on Dec 20, 2011

Thinking of selling a security before December 31 to take advantage of a capital loss? To make sure the loss is deductible, refrain from buying a substantially identical security during the 61-day period that begins 30 days before you sell and ends 30 days after. Such a purchase would violate the “wash sale rule” and make your loss nondeductible.

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