Treasury Regulations (26 C.F.R.)
26 CFR § 1.1091-2
Basis of stock or securities acquired in “wash sales”.
# (a) In general.
The application of section 1091(d) may be illustrated by the following examples:
Example 1.
A purchased a share of common stock of the X Corporation for $100 in 1935, which he sold January 15, 1955, for $80. On February 1, 1955, he purchased a share of common stock of the same corporation for $90. No loss from the sale is recognized under section 1091. The basis of the new share is $110; that is, the basis of the old share ($100) increased by $10, the excess of the price at which the new share was acquired ($90) over the price at which the old share was sold ($80).
Example 2.
A purchased a share of common stock of the Y Corporation for $100 in 1935, which he sold January 15, 1955, for $80. On February 1, 1955, he purchased a share of common stock of the same corporation for $70. No loss from the sale is recognized under section 1091. The basis of the new share is $90; that is, the basis of the old share ($100) decreased by $10, the excess of the price at which the old share was sold ($80) over the price at which the new share was acquired ($70).
# (b) Special rule.
For a special rule as to the adjustment to basis required under section 1091(d) in the case of wash sales involving certain regulated investment company stock for which there is an average basis, see paragraph (e)(3)(iii) (c) and (d) of § 1.1012-1.
[T.D. 6500, 25 FR 11910, Nov. 26, 1960, as amended by T.D. 7129, 36 FR 12738, July 7, 1971]
Source: view the official text
In this part (40 sections)
- 1.1071-4 · Manner of election.
- 1.1081-1 · Terms used.
- 1.1081-2 · Purpose and scope of exception.
- 1.1081-3 · Exchanges of stock or securities solely for stock or…
- 1.1081-4 · Exchanges of property for property by corporations.
- 1.1081-5 · Distribution solely of stock or securities.
- 1.1081-6 · Transfers within system group.
- 1.1081-7 · Sale of stock or securities received upon exchange by…
- 1.1081-8 · Exchanges in which money or other nonexempt property is…
- 1.1081-9 · Requirements with respect to order of Securities and…
- 1.1081-10 · Nonapplication of other provisions of the Internal Revenue…
- 1.1081-11 · Records to be kept and information to be filed with returns.
- 1.1082-1 · Basis for determining gain or loss.
- 1.1082-2 · Basis of property acquired upon exchanges under section 1081…
- 1.1082-3 · Reduction of basis of property by reason of gain not…
- 1.1082-4 · Basis of property acquired by corporation under section…
- 1.1082-5 · Basis of property acquired by shareholder upon tax-free…
- 1.1082-6 · Basis of property acquired under section 1081(d) in…
- 1.1083-1 · Definitions.
- 1.1091-1 · Losses from wash sales of stock or securities.
- 1.1091-2 · Basis of stock or securities acquired in “wash sales”.
- 1.1092(b)-1T · (b)-1T Coordination of loss deferral rules and wash sale…
- 1.1092(b)-2T · (b)-2T Treatment of holding periods and losses with…
- 1.1092(b)-3T · (b)-3T Mixed straddles; straddle-by-straddle…
- 1.1092(b)-4T · (b)-4T Mixed straddles; mixed straddle account…
- 1.1092(b)-5T · (b)-5T Definitions (temporary).
- 1.1092(b)-6 · (b)-6 Mixed straddles; accrued gain and loss associated…
- 1.1092(c)-1 · (c)-1 Qualified covered calls.
- 1.1092(c)-2 · (c)-2 Equity options with flexible terms.
- 1.1092(c)-3 · (c)-3 Qualifying over-the-counter options.
- 1.1092(c)-4 · (c)-4 Definitions.
- 1.1092(d)-1 · (d)-1 Definitions and special rules.
- 1.1092(d)-2 · (d)-2 Personal property.
- 1.1201-1 · Alternative tax.
- 1.1202-0 · Table of contents.
- 1.1202-1 · Deduction for capital gains.
- 1.1202-2 · Qualified small business stock; effect of redemptions.
- 1.1211-1 · Limitation on capital losses.
- 1.1212-1 · Capital loss carryovers and carrybacks.
- 1.1221-1 · Meaning of terms.