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Post by chang on Jun 15, 2022 15:58:07 GMT
I should know the answer to this, but my mind is a bit blurry at the moment.
I did a TOA into my VG T-IRA and the money just arrived. I own VEIRX in taxable, and want to sell it and re-buy in the IRA. The main reason is to get all actively-managed funds into tax deferred (a process which might take me my entire life), but I also have a small loss on the position right now, that I'd like to book.
Can I make the sell/buy simultaneously, without impairing the tax loss?
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Post by anitya on Jun 15, 2022 16:05:39 GMT
I should know the answer to this, but my mind is a bit blurry at the moment. I did a TOA into my VG T-IRA and the money just arrived. I own VEIRX in taxable, and want to sell it and re-buy in the IRA. The main reason is to get all actively-managed funds into tax deferred (a process which might take me my entire life), but I also have a small loss on the position right now, that I'd like to book. Can I make the sell/buy simultaneously, without impairing the tax loss? The technical answer, not necessarily what your brokerage might do - The IRS has revenue ruling on this saying wash sale applies. I do not know anybody has challenged the IRS reasoning via a court case. One of the difficulties of treating this as a wash sale is, tracking the loss that is supposed to be added to the basis of the new purchase. If your brokerage does not track, then they will issue 1099 when they make distributions from your IRA without considering this phantom basis and you will have to make the adjustment on your tax return. Too messy. |
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Deleted
Deleted Member
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Post by Deleted on Jun 15, 2022 16:48:19 GMT
Buy in the non-taxable first then sell in the taxable account 31 days later. Don't reinvest dividends in the taxable account 30 days before selling.
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Post by chang on Jun 15, 2022 19:02:57 GMT
Just realized I could buy VDIGX in the IRA, and sell VEIRX in taxable, and then not worry about a wash sale.
Different funds, of course, but both good, well managed and intelligently constructed, and I don’t expect a significant divergence in performance.
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Post by Chahta on Jun 21, 2022 1:46:52 GMT
You can buy the ETF version.
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