fb-wash-0009
{
"facts": "A taxable account holds 100 shares of STU. On February 18, 2026 it buys 100 additional shares of STU. On March 10, 2026 — 20 days later — it sells the original 100 shares at a loss and keeps the shares bought in February. There are no other STU transactions within the window. The taxpayer is not a dealer.",
"purchase_date": "2026-02-18",
"sale_date": "2026-03-10",
"shares_sold": 100,
"replacement_shares": 100
}How does section 1091 treat the realized loss on the March 10 sale? Answer with exactly one option id.
loss-disallowed-fully— The loss is disallowed in fullloss-disallowed-partially— The loss is disallowed in partloss-fully-deductible— The loss is fully deductible — the purchase happened before the saleno-loss-nothing-to-disallow— There is no loss, so section 1091 does not apply
loss-disallowed-fully
The statutory window begins 30 days BEFORE the sale. The February 18 purchase is 20 days before the March 10 sale, inside the window, and its 100 shares match all 100 sold shares. Acquisitions before the sale trigger the disallowance exactly as post-sale repurchases do, so the loss is disallowed in full.
Selects loss-disallowed-fully; the pre-sale purchase inside the 30-days-before leg triggers the rule.
“within a period beginning 30 days before the date of such sale or disposition and ending 30 days after such date, the taxpayer has acquired (by purchase or by an exchange on which the entire amount of gain or loss was recognized by law), or has entered into a contract or option so to acquire, substantially identical stock or securities, then no deduction shall be allowed”
Each quoted passage is exact-matched, after typographic normalization, against the corpus text fetched from the issuing authority (hashes in the corpus manifest). An item whose quote stops matching fails the build.
“within a period beginning 30 days before the date of such sale or disposition and ending 30 days after such date, the taxpayer has acquired” — usc-1091
The key is correct. Initial logic and parameters are validated. The 20-day interval falls within the statutory window, triggering full disallowance under section 1091(a).
“within a period beginning 30 days before the date of such sale or disposition and ending 30 days after such date, the taxpayer has acquired” — usc-1091
The cited text expressly includes acquisitions within 30 days before the sale. The February 18 purchase is 20 days before the March 10 sale, and the taxpayer is not a dealer, so section 1091 applies. Because 100 shares were acquired and 100 shares were sold, the loss is disallowed in full.
v1; no errata. Demonstrate a key error and the correction is published here, credited — challenge policy.