noun
General Slang
Bed-and-breakfast
· noun · finance
Sell a stock at the close and buy it back at the open to bank a tax loss.
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Definitions
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A British tax dodge where you sell a losing position one evening and buy it straight back the next morning. You keep the position, you crystallise the capital loss, HMRC gives you the writedown. Killed off in 1998 when the 30-day rule made the round-trip pointless.
“You can't really bed-and-breakfast UK stocks any more — the 30-day rule eats the loss.”
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Bed-and-breakfast In A Sentence
You can't really bed-and-breakfast UK stocks any more — the 30-day rule eats the loss.
Origin & Usage
London Stock Exchange jargon, named for the overnight stay between sale and repurchase.
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