What does wash sale mean on the CPA exam?
Wash sale. Selling a security at a loss and buying a substantially identical one within 30 days either side. The loss is disallowed and added to the new basis.
Defined against Sec. 1091.
Which CPA exam sections use wash sale?
Wash sale appears in the REG section of the CPA exam.
Related terms
- disallowed loss: A loss the Code refuses to let you deduct, typically on a sale to a related person or a wash sale.
- net capital gain: Net long-term capital gain minus net short-term capital loss.
- excess business loss: The amount by which a noncorporate taxpayer's aggregate business deductions exceed business income plus a threshold.
- partnership liabilities: Debt of the partnership, allocated among the partners and added to their outside basis.