Philip sold 100 shares of Easton stock at a loss on March 14

Philip sold 100 shares of Easton stock at a loss on March 14, 2016. To avoid being subject to the wash sale rules, which of the following dates is the earliest date on which he could purchase the stock again?

1) April 1, 2016

2) April 15, 2016

3) May 2, 2016

4) May 10, 2016

*Please answer only you are 100% sure.

Solution

What is the \'Wash-Sale Rule\'

An Internal Revenue Service (IRS) rule that prohibits a taxpayer from claiming a loss on the sale or trade of a security in a wash sale. The rule defines a wash sale as one that occurs when an individual sells or trades a security at a loss, and within 30 days before or after this sale, buys a “substantially identical” stock or security, or acquires a contract or option to do so.

Hence the answer is (2) April 15,2016