How to Avoid Falling into the Superficial Loss Trap?
Key Points: The purpose of the superficial loss rules is to prevent taxpayers from immediately repurchasing the same or identical property (called "substituted property") after selling it to obtain tax advantages. Conditions triggering the superficial loss rules include purchasing the substituted property within a specific timeframe before and after the sale. The simplest way to avoid triggering superficial losses is to wait for at least 31 days before repurchasing the substituted property. Many savvy investors often review their financial situations…
