Selling stock at a gain and then buying it back at the current price to create a new basis
in the stock. The shares or other marketable securities are sold for a gain, so there is no wash sale
. The main reason for selling would be the prospect of higher capital gains
tax rates in a future year, but there is the upfront cost of paying the taxes for the sale. Compare this technique to tax-loss harvesting
For additional issues to consider when resetting the basis, particularly in company stock acquired from equity awards, see the related FAQ elsewhere on this website.