Sec. 3422. Wash sales by related parties
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Subsection
(a)of section 1091 is amended by striking the taxpayer has acquired and inserting the taxpayer (or a related party) has acquired . Subsection
(d)of section 1091 is amended to read as follows: If the taxpayer (or the taxpayer’s spouse) acquires substantially identical stock or securities during the period which— begins 30 days before the disposition with respect to which a deduction was disallowed under subsection (a), and ends with the close of the taxpayer’s first taxable year which begins after such disposition, the basis of such stock or securities shall be increased by the amount of the deduction so disallowed (reduced by any amount of such deduction taken into account under this subsection to increase the basis of stock or securities previously acquired). . Section 1091 is amended by adding at the end the following new subsection: For purposes of this section— The term related party means— the taxpayer’s spouse, any dependent of the taxpayer and any other taxpayer with respect to whom the taxpayer is a dependent, any individual, corporation, partnership, trust, or estate which controls, or is controlled by, (within the meaning of section 954(d)(3)) the taxpayer or any individual described in subparagraph
(A)or
(B)with respect to the taxpayer (or any combination thereof), any individual retirement plan, Archer MSA (as defined in section 220(d)), or health savings account (as defined in section 223(d)), of the taxpayer or of any individual described in subparagraph
(A)or
(B)with respect to the taxpayer, any account under a qualified tuition program described in section 529 or a Coverdell education savings account (as defined in section 530(b)) if the taxpayer, or any individual described in subparagraph
(A)or
(B)with respect to the taxpayer, is the designated beneficiary of such account or has the right to make any decision with respect to the investment of any amount in such account, and any account under— a plan described in section 401(a), an annuity plan described in section 403(a), an annuity contract described in section 403(b), or an eligible deferred compensation plan described in section 457(b) and maintained by an employer described in section 457(e)(1)(A), if the taxpayer or any individual described in subparagraph
(A)or
(B)with respect to the taxpayer has the right to make any decision with respect to the investment of any amount in such account. Determinations under paragraph
(1)shall be made as of the time of the purchase or exchange referred to in subsection
(a)except that determinations under subparagraphs
(A)and
(B)of paragraph
(1)shall be made for the taxable year which includes such purchase or exchange. Except as provided in clause (ii), marital status shall be determined under section 7703. A husband and wife who— file separate returns for any taxable year, and live apart at all times during such taxable year, shall not be treated as married individuals. The Secretary shall issue such regulations or other guidance as may be necessary to prevent the avoidance of the purposes of this subsection, including regulations which treat persons as related parties if such persons are formed or availed of to avoid the purposes of this subsection. . The amendments made by this section shall apply to sales and other dispositions after December 31, 2014.