💰 CPA Exam Prep

The wash sale rule disallows a loss deduction when:

A Any stock is sold
B Substantially identical securities are purchased within 30 days before or after the sale
C Stock increases in value
D Options expire

✓ Correct Answer: Option B

Wash sale (§1091): loss disallowed if substantially identical securities are acquired within the 61-day window (30 days before/after sale).

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