bed-and-breakfast deal

noun

The practice of selling a position on the last trading day of the year to establish a tax loss, and then repurchasing early on the first session of the new trading year, to restore the position.

Meanings

nounbed-and-breakfast deal (plural bed-and-breakfast deals)

plural bed-and-breakfast deals

  1. UKbusinessThe practice of selling a position on the last trading day of the year to establish a tax loss, and then repurchasing early on the first session of the new trading year, to restore the position.

    Synonyms: bed-and-breakfast transaction, wash sale

Synonyms & antonyms

nounThe practice of selling a position on the last trading day of the year to establish a tax loss, and then repurchasing early on the first session of the new trading year, to restore the position.

Origin

From the idea that one might stay in a bed and breakfast, since the trades take place on two consecutive days.

Full word history & related roots →
Cite this entry
APA

bed-and-breakfast deal. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/bed-and-breakfast%20deal

MLA

“bed-and-breakfast deal.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/bed-and-breakfast%20deal. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “bed-and-breakfast deal,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/bed-and-breakfast%20deal.

Source: bed-and-breakfast deal on Wiktionary, CC BY-SA 4.0.