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Post by chang on Jun 24, 2023 13:25:05 GMT
I sold an actively managed fund in my taxable acct on 6/5. (Trying to keep only passive in taxable, and active in tax deferred.) Now the NAV has dropped below what I sold it for, and I’m thinking of making room to rebuy some in my IRA.
The sale generated a capital loss, which I want to use. Question: IF I buy the same fund in the IRA (within the same brokerage company), will they report this as a wash sale and disallow the loss?
Alternatively, what if I buy a different share class of the same fund (eg. investor vs institutional)?
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Post by yogibearbull on Jun 24, 2023 14:31:02 GMT
Wash sale rule applies to all accounts, even when the broker may not flag/detect it. Different classes of a fund ate treated as the same. Use another fund or ETF temporarily.
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Post by chang on Jun 24, 2023 18:23:45 GMT
Thanks yogi. I thought so, but wasn’t sure.
Given the seasonality factor, I might just do nothing and wait the 30 days. By the way, it’s 30 *calendar* days, right?
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Post by yogibearbull on Jun 24, 2023 18:27:08 GMT
Yes, calendar days. Using the trigger event date as day 0, count +/- 30 days on calendar, and stay out of that window.
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sam
Lieutenant
Posts: 123
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Post by sam on Jun 25, 2023 1:12:14 GMT
Other way to remember wash rule days, it is Total 61 days, where day 1 is date of Loss trade and 30 days before and 30 days after fall within WASH rule restrictions.
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Post by steadyeddy on Jun 25, 2023 2:57:44 GMT
I sold an actively managed fund in my taxable acct on 6/5. (Trying to keep only passive in taxable, and active in tax deferred.) Now the NAV has dropped below what I sold it for, and I’m thinking of making room to rebuy some in my IRA. The sale generated a capital loss, which I want to use. Question: IF I buy the same fund in the IRA (within the same brokerage company), will they report this as a wash sale and disallow the loss? Alternatively, what if I buy a different share class of the same fund (eg. investor vs institutional)? To the best of my knowledge, at least Fidelity does not bother with reporting/disallowing losses if the same fund is purchased in an IRA within the wash sale time limit. As an aside, Fidelity does not even add reinvested dividends to the cost basis in tax-deferred or tax-free (Roth) accounts.
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Post by chang on Jun 27, 2023 8:40:11 GMT
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Post by yogibearbull on Jun 27, 2023 22:11:06 GMT
chang , I got an alert for the tag and had to look for some info. It would be hard to find an ETF replacement for international growth VWILX. But for your wash-sale purposes, look at much smaller Harbor HIIGX. It is managed by a different team at Baillie Gifford (one of the firms that manages giant VWILX). The 2 funds have had similar performance and that is what you want in wash-sale swaps. After the wash-sale window, you could go back to VWILX. M* rates them quite differently: VWILX 3*, Silver; Analyst Report is readable. HIIGX 1*, Negative; Analyst Report is gobbledygook - looks like the old computer-generated Q-Report with Q just removed.
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Post by Chahta on Jul 11, 2023 16:56:18 GMT
chang , I got an alert for the tag and had to look for some info. It would be hard to find an ETF replacement for international growth VWILX. But for your wash-sale purposes, look at much smaller Harbor HIIGX. It is managed by a different team at Baillie Gifford (one of the firms that manages giant VWILX). The 2 funds have had similar performance and that is what you want in wash-sale swaps. After the wash-sale window, you could go back to VWILX. M* rates them quite differently: VWILX 3*, Silver; Analyst Report is readable. HIIGX 1*, Negative; Analyst Report is gobbledygook - looks like the old computer-generated Q-Report with Q just removed. I know that skirting wash sale rules by using a similar but different fund for the 30 days, why not use a MM fund if you are waiting to re buy the original fund? I realize the replacement fund could appreciate in the 30 days but it could decline as well.
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Post by chang on Jul 11, 2023 17:25:15 GMT
The issue is now history. As it happened, I just kept the proceeds in cash (MM); then the market swooned 31 days after the original sale, so I rebought (a partial amount) at about 2-3% below the sales price. All good.
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