Wash Sales Killer Rules And Advice
In order to lower income taxes, investors are interested in claiming capital loss on their tax returns. The IRS has specific rules on capital losses claims.You are not allowed to claim tax deduction on losses from sales or trades of stocks or securities in a wash sale. The profit you may obtain is subject to federal income tax.
Wash Sales Rules – IRS
A wash sale occurs when you sell securities at a loss, and within 30 days before and after the sale, you buy identical securities or stocks, or you acquire a contract to buy them.It is still considered a wash sale if, within 30 days before after the sale, you acquire identical securities or stocks for your Individual Retirement Account.The wash rule does not apply for losses from foreign currencies or sales or trades from commodity futures contracts.You may reinvest in securities that are not identical, or belonging to another company.Contact Joe Mastriano P.C. today to see what options we have to help you start resolving your tax problem. You don’t have to hide from the IRS anymore. With over 30 years of experience the knowledge that comes with that, we can handle anything the IRS has thrown your way. Visit our website or call us NOW at (713)774-4467.