PrivateTechSharesWash sale
Also called: wash-sale rule
In one line
A US rule that disallows a tax loss if you buy back a substantially identical security within 30 days of selling it at a loss.
In plain English
If you sell shares at a loss to claim a tax deduction, then rebuy the same stock within 30 days, the wash-sale rule blocks the loss. It mainly matters for public shares but can catch equity-holders.
If you were explaining it to a 5-year-old
You can't sell a toy at a loss to get a tax break and then quickly buy the same toy back — the taxman says that doesn't count.
Why it matters when you sell
If you're managing gains and losses around a sale, the wash-sale rule can disallow a loss you were counting on.
Related terms
Put it to use
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Sources
Primary references for this term: IRS (US tax). Our definitions are written in plain English and kept evergreen — see the glossary methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.