Accommodation Trading

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Definition: Accommodation Trading

Accommodation Trading
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Full Definition of Accommodation Trading

A tax-avoidance technique whereby two traders agree to make a non-competitive stock trade that allows one trader to claim an investment loss when filing taxes. For example, Tim agrees to purchase shares that Joe bought for $50 at a price of $40; thereby, Joe can claim a loss of $10 per share. Once taxes are filed, Tim sells the shares back to Joe at a price of $40, creating a “wash sale”.

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April 25, 2024 https://payrollheaven.com/define/accommodation-trading/.
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Accommodation Trading. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/accommodation-trading/ (accessed: April 25, 2024).
American Psychological Association (APA):
Accommodation Trading. PayrollHeaven.com. Retrieved April 25, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/accommodation-trading/

Definition Sources

Definitions for Accommodation Trading are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.