Tax, fees & accounts
Wash sale
Also called Bed and breakfasting rules
A rule disallowing a tax loss when you repurchase the same security too soon after selling.
How it works
The US rule covers 30 days before and after the sale. The UK equivalent uses a 30-day rule matching disposals against later acquisitions. Other countries have their own versions.
The intent is to stop people generating tax losses without genuinely changing their position.
Related terms
- Tax-loss harvestingSelling a losing holding to realise the loss and offset it against taxable gains.
- Capital gains taxTax on the profit made when you sell an investment for more than you paid.
- Cost basisWhat you actually paid for a holding, including fees — the number every gain or loss is measured from.
More in Tax, fees & accounts
- Withholding tax
- Average cost
- Tax wrapper
- Stamp duty
- Currency conversion fee
- Platform fee
- FIFO and other lot methods
- Income tax on investments
All 11 Tax, fees & accounts terms · The full glossary, 433 terms
Educational reference only. Nothing here is investment advice or a recommendation to buy or sell anything, and tax treatment depends on your own circumstances and the country you are in.