Wash Sale Question

[childay]

I am thinking about harvesting some losses.  I have three lots with loss, purchased

05/15/2017, 05/30/2017, 06/09/2017

Am I correct in thinking as long as I sell all the lots within the last 30 days (the latter two lots), then there is no concern for a retroactive wash sale?

[Zaphod]

It doesnt matter when you sell them, only when you buy them back. Has to be 30 days after that day.

[childay]

My understanding is wash sale rules apply to 30 days before the sale as well as after, correct?

https://www.bogleheads.org/wiki/Wash_sale

 

Question being I bought same ETF within 30 days but if I sell them all together it avoids wash sale?

[PhysicianOnFIRE]

Yes, as long as you sell them all, you're good.

If you only sold the 5/15 and 6/9 lots, the 5/30 lot would be considered "replacement shares" since purchased within 30 days of taking a loss. So just sell 'em all and don't buy the same ETF in the next month.

Best,

-PoF

[childay]

PhysicianOnFIRE wrote:

Yes, as long as you sell them all, you’re good.

If you only sold the 5/15 and 6/9 lots, the 5/30 lot would be considered “replacement shares” since purchased within 30 days of taking a loss. So just sell ’em all and don’t buy the same ETF in the next month.

Best,

-PoF

Click to expand...

Thats what I was thinking thanks!

[Zaphod]

childay wrote:

My understanding is wash sale rules apply to 30 days before the sale as well as after, correct?

https://www.bogleheads.org/wiki/Wash_sale

 

Question being I bought same ETF within 30 days but if I sell them all together it avoids wash sale?

Click to expand...

Ah, yes, you have to sell them all.

[Faithful Steward]

Be aware that the wash sale rule applies to more than just the taxable account where you plan to harvest the loss.

Back in 2008, the IRS issued Revenue Ruling 2008-5. In it they addressed the question of whether the wash-sale rules apply to IRAs. The IRS explained that when shares are sold in a non-retirement account and substantially identical shares are purchased in an IRA within 30 days, the investor cannot claim tax losses for the sale, and the basis in the individual's IRA is not increased.

[AR]

I'm not sure how important this is, but I think that you need to also make sure to turn off dividend reinvestments during that period if you have other older lots of the same fund that you are going to keep and the dividend date falls in your window.

 

 

[childay]

Yes a good reminder, already have my dividends set to go to the money market fund, thanks.