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Wash sale

In the language of the stock exchange, a wash sale is the simultaneous purchase and sale of the same stock. For income tax purposes, a sale of stock or securities at a loss cannot result in deduction of the loss if substantially identical stocks or securities are purchased within a 61-day period beginning 30 days before the date of the sale and ending 30 days after the sale. The acquisition or reacquisition of such stock or securities has no effect on sales at a gain.