Rinse, Wash, Repeat.......

Q: Nancy asks, “Derek, how does a “Wash Sale” and why would I complete such a transaction?”

A: Nancy, what a timely question as markets have surged since March? A wash sale occurs when a taxpayer sells stock or securities at a loss and within thirty days before or after the sale buys substantially identical stock or securities. Thus, a taxpayer must wait at least 31 days before repurchasing the stock that was sold.