Wash Sale Legal Meaning and Definition

Here is a simplified definition of the legal term Wash Sale.

Wash Sale (noun)

A wash sale is when someone buys and sells the same thing, like stocks or bonds, within 30 days or at the same moment. If a wash sale happens, the person can't use any money lost in the sale to lower how much taxes they need to pay. Instead, the money lost adds to the cost of similar things they bought recently.