Frequently Asked Questions

What is Wash Sale?

A wash sale occurs when you sell or trade securities at a loss and within 30 days before or after the sale you:

- Buy substantially identical securities,

- Acquire substantially identical securities in a fully taxable trade, or

- Acquire a contract or option to buy substantially identical securities.


Internal Revenue Service rules prohibit you from deducting losses related to wash sales. For more information about wash sales, read IRS Publication 550, Investment Income and Expenses (Including Capital Gains and Losses).

https://www.sec.gov/cgi-bin/goodbye.cgi?www.irs.gov/pub/irs-pdf/p550.pdf


If the loss is disallowed by the IRS because of the wash-sale rule, the taxpayer has to add the loss to the cost of the new stock, which becomes the cost basis for the new stock.


For example, consider the case of an investor who purchased 100 shares of Microsoft for $33, sold the shares at $30, and within 30 days bought 100 shares at $32. In this case, while the loss of $300 would be disallowed by the IRS because of the wash-sale rule, it can be added to the $3,200 cost of the new purchase. The new cost basis, therefore, becomes $3,500 for the 100 shares that were purchased the second time, or $35 per share.

The wash sale rule is established in order to prevent taxpayers from being able to claim artificial losses in order to maximize their tax benefits. There is no direct ‘penalty’ to you from the IRS for this type of transaction but you will not be able to use the realized loss from the wash sale to offset your capital gains or other taxable income. Note that this rule only applies to the taxpayers who must file their tax returns with the IRS


How Can I Get my Tax Forms?

Tax forms will be sent to you via Email.


Does Futu Inc. Offer Tax Advice?

We do not give tax advice, so for specific questions about your tax forms, including how to file it, we recommend speaking with a tax professional.


How Can I Change The Information on My W-9 Form?

You can send Email to cs@fututrade.com with the following information to verify your identity

1) Your Name

2) Your moomoo ID

3) Your Social Security Number

4) Your Date of Birth


How Can I Change The Incorrect Trading History or Dividend Information in 1099 Form?

You can send Email to cs@fututrade.com with the following information to verify your identity

1) Your Name

2) Your moomoo ID

3) Your Social Security Number

4) Your Date of Birth