Are corporations subject to the wash sales rule?

Joined
Mar 25, 2011
Messages
3
Reaction score
0
i fully understand the individual is subject to the wash sales rules... but are corporations subject to the them?
 
Joined
Mar 25, 2011
Messages
9
Reaction score
0
When you sell a stock at a loss and repurchase a substantially identical stock within 30 days, your transaction will likely be considered as a wash sale. A taxpayer cannot deduct losses incurred from wash sales, however, gains from such sales are taxable.

A wash sale results when a taxpayer sells stock or securities at a loss and within 30 days before or after the sale, buys, in a fully taxable trade, substantially identical stock or securities. This rule also applies if you sell the stock and your spouse, or a corporation you control, buys the substantially identical stock. Under the wash sale rules, the term “stock or securities” includes contracts or options to acquire or sell stocks or securities.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top