26 U.S.C. § 1091
Loss from wash sales of stock or securities
# (a) Disallowance of loss deduction
In the case of any loss claimed to have been sustained from any sale or other disposition of shares of stock or securities where it appears that, within a period beginning 30 days before the date of such sale or disposition and ending 30 days after such date, the taxpayer has acquired (by purchase or by an exchange on which the entire amount of gain or loss was recognized by law), or has entered into a contract or option so to acquire, substantially identical stock or securities, then no deduction shall be allowed under section 165 unless the taxpayer is a dealer in stock or securities and the loss is sustained in a transaction made in the ordinary course of such business. For purposes of this section, the term “stock or securities” shall, except as provided in regulations, include contracts or options to acquire or sell stock or securities.
# (b) Stock acquired less than stock sold
If the amount of stock or securities acquired (or covered by the contract or option to acquire) is less than the amount of stock or securities sold or otherwise disposed of, then the particular shares of stock or securities the loss from the sale or other disposition of which is not deductible shall be determined under regulations prescribed by the Secretary.
# (c) Stock acquired not less than stock sold
If the amount of stock or securities acquired (or covered by the contract or option to acquire) is not less than the amount of stock or securities sold or otherwise disposed of, then the particular shares of stock or securities the acquisition of which (or the contract or option to acquire which) resulted in the nondeductibility of the loss shall be determined under regulations prescribed by the Secretary.
# (d) Unadjusted basis in case of wash sale of stock
If the property consists of stock or securities the acquisition of which (or the contract or option to acquire which) resulted in the nondeductibility (under this section or corresponding provisions of prior internal revenue laws) of the loss from the sale or other disposition of substantially identical stock or securities, then the basis shall be the basis of the stock or securities so sold or disposed of, increased or decreased, as the case may be, by the difference, if any, between the price at which the property was acquired and the price at which such substantially identical stock or securities were sold or otherwise disposed of.
# (e) Certain short sales of stock or securities and securities futures contracts to sell
Rules similar to the rules of subsection (a) shall apply to any loss realized on the closing of a short sale of (or the sale, exchange, or termination of a securities futures contract to sell) stock or securities if, within a period beginning 30 days before the date of such closing and ending 30 days after such date— (1) substantially identical stock or securities were sold, or (2) another short sale of (or securities futures contracts to sell) substantially identical stock or securities was entered into. For purposes of this subsection, the term “securities futures contract” has the meaning provided by section 1234B(c).
# (f) Cash settlement
This section shall not fail to apply to a contract or option to acquire or sell stock or securities solely by reason of the fact that the contract or option settles in (or could be settled in) cash or property other than such stock or securities.
Source: view the official text
Cited by 29
- 26 CFR § 1.1012-1 — Basis of property.
- 26 CFR § 1.1091-1 — Losses from wash sales of stock or securities.
- 26 CFR § 1.1091-2 — Basis of stock or securities acquired in “wash sales”.
- 26 CFR § 1.1092(b)-1T — Coordination of loss deferral rules and wash sale rules (temporary).
- 26 CFR § 1.1092(b)-5T — Definitions (temporary).
- 26 CFR § 1.1223-1 — Determination of period for which capital assets are held.
- 26 CFR § 1.1231-1 — Gains and losses from the sale or exchange of certain property used in the trade or business.
- 26 CFR § 1.1233-1 — Gains and losses from short sales.
- 26 CFR § 1.1502-13 — Intercompany transactions.
- 26 CFR § 1.1502-32 — Investment adjustments.
- 26 CFR § 1.246-3 — Exclusion of certain dividends.
- 26 CFR § 1.267(d)-1 — Amount of gain where loss previously disallowed.
Show 17 more
- 26 CFR § 1.267(f)-1 — Controlled groups.
- 26 CFR § 1.312-7 — Effect on earnings and profits of gain or loss realized after February 28, 1913.
- 26 CFR § 1.336-0 — Table of contents.
- 26 CFR § 1.336-2 — Availability, mechanics, and consequences of section 336(e) election.
- 26 CFR § 1.336-3 — Aggregate deemed asset disposition price; various aspects of taxation of the deemed asset disposition.
- 26 CFR § 1.422-1 — Incentive stock options; general rules.
- 26 CFR § 1.6045-1 — Returns of information of brokers and barter exchanges.
- 26 CFR § 1.6045A-1 — Statements of information required in connection with transfers of securities.
- 26 U.S.C. § 1092 — Straddles
- 26 U.S.C. § 1223 — Holding period of property
- 26 U.S.C. § 1256 — Section 1256 contracts marked to market
- 26 U.S.C. § 267 — Losses, expenses, and interest with respect to transactions between related taxpayers
- 26 U.S.C. § 312 — Effect on earnings and profits
- 26 U.S.C. § 475 — Mark to market accounting method for dealers in securities
- 26 U.S.C. § 6045 — Returns of brokers
- 26 U.S.C. § 860F — Other rules
- 26 U.S.C. § 877A — Tax responsibilities of expatriation
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