Wash Sales

[Swish]

Does anybody know why the wash sale rule exists w/ the IRS?? What is it trying to prevent or what loophole was it trying to close?

Only thing I could think of was might have been instituted long time ago to discourage manipulation of stock price through indirect volume inflation.......

Swish

 

[stevebec]

It keeps you from selling the stock at a loss to get the tax writeoff and then buying it right back to keep your position effectively the same.