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selling stock and taxes

In the following situation, I am having problems identifying the related tax issue.

Mr. Tony owns stock that has declined in value. He is considering selling the stock to recognize the tax loss but is reluctant to do so because he believes the stock price will rebound. He arranges to sell the stock to a friend, who then immediately sells it to Stella, Mr. Tony's wife

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This is considered a "wash sale". One cannot sell a security and buy it back ...

Solution Summary

tax ramifications of selling stock