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LSDefine

Simple English definitions for legal terms

wash sale

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A quick definition of wash sale:

Wash sale: When you sell something like stocks or bonds for less money than you paid for them and then quickly buy similar stocks or bonds again, it's called a wash sale. People used to do this to get a tax break, but now the government usually doesn't allow it.

A more thorough explanation:

A wash sale is when you sell an asset, like stocks or bonds, at a loss and then buy similar assets within a short period of time. People do this to try and get a tax deduction for the loss. However, the IRS has made it so that these losses are usually not deductible.

Let's say you bought 100 shares of XYZ stock for $10 each. The stock price drops and you sell those shares for $8 each, resulting in a loss of $200. If you buy 100 shares of XYZ stock again within 30 days, that's considered a wash sale. You can't deduct the $200 loss on your taxes.

Another example is if you sell a bond at a loss and then buy a similar bond within 30 days. That's also a wash sale.

These examples show how people try to take advantage of tax deductions by selling assets at a loss and then buying them back quickly. However, the IRS has rules in place to prevent this from happening too often.

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19:34
wow lots of decisions today, i think today was the most per day yet.
Dkk
19:36
Stay off reddit. It will do this to your brain:
19:37
google contracted with reddit to train their ai how people talk. lol the 'ai future' is going to be full of search results FED REDDIT POSTS. unplug the internet now! https://www.reuters.com/technology/reddit-ai-content-licensing-deal-with-google-sources-say-2024-02-22/
Google AI is actually pretty cool though. Only when its actually accurate though.
19:40
by pretty cool, do you mean smug pseudo intelect?
Dkk
19:40
THE INTERNET WAS A MISTAKE. END IT NOW.
Dkk
19:40
Google AI kept telling me schools were not binding ED when they were. Really annoyed me.
Dkk
19:41
Yeah, when accurate it is nice.
this election has the potential to push america further into ultranationalist populism
Dkk
19:42
Maybe, didnt happen last time.
19:42
it was hard to not improve it. google search was terrible due to the ads and seo cheaters with buzz words and alt text
Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
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