Self Study: The Wash Sale Rules for Investor Losses

General Description:

This course covers the basics of the wash sale rules that limit the deductibility of losses for retail (personal) investors. The rules are intended to prevent an investor from artificially creating a deductible loss by selling shares at a loss and then promptly replacing those shares, resulting in the same investment position.

Learning Objective:

After completing this course, the participant will be able to:

• Identify wash sale transactions based on the wash sale measurement period.
• Identify substantially identical stock or securities covered by the wash sale rules.
• Calculate the appropriate basis and holding period of a security acquired in a wash sale.

Instructors:

Richard L. Russell, Jr. is an associate professor of accounting at Metropolitan State University of Denver (MSU Denver), teaching Tax I & II in the undergraduate program and Tax Research, Tax Practice & Procedure, and Partnership Taxation in the graduate Master of Professional Accountancy program. He earned his bachelor’s degree in accounting and Master of Professional Accountancy from Jackson State University and J.D. from the University of Iowa College of Law. He is licensed as a CPA in Mississippi and Colorado and licensed as an attorney in Colorado. He has served as a member of the AICPA’s Regulation Subcommittee, which votes on CPA exam questions related to tax and business law, and is licensed to practice before the United States Tax Court.

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