bed-and-breakfast deal

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

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

1. (UK, finance) 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.

   Synonyms: bed-and-breakfast transaction, wash sale

• bed-and-breakfasting

• John Smullen, Nicholas Hand, editors (2005), “bed and breakfast”, in A Dictionary of Finance and Banking, 3rd edition, Oxford University Press, →ISBN, page 38