(4 points) An individual taxpayer, Jackie, owns stock that h…
(4 points) An individual taxpayer, Jackie, owns stock that has a current market value that is lower than what she originally paid for it (i.e., can generate a capital loss). The taxpayer believes that next year the stock’s value will go up to a value that exceeds what she originally paid (i.e., will produce a capital gain in the longer term). However, she doesn’t want to miss out on the benefit of a capital loss this year that could lower her tax bill. As a result, she decides she will sell the stock this year to be able to claim a capital loss and then buy the stock back the very next day at a similar price so that she can benefit from the appreciation of the stock’s value next year.What is the name of the tax rule that prevents the taxpayer from taking advantage of this type of strategy?