Sentences with phrase «disallows losses for tax purposes»
Not exact matches
This hypothetical illustration assumes the investor met the holding requirement for long - term capital gains tax rates (longer than one year), the gains were taxed at the current maximum federal rate of 23.8 %, and the loss was not disallowed for tax purposes due to a wash sale, related party sale, or other reason.
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The IRS disallows the recognition of the loss for tax purposes in such cases.
When you sell, at a loss, a security of any sort that would be treated as a capital item, the loss will be disallowed for tax purposes if you purchased substantially the same security within 30 days before or after the sale: