The Saving Advice Forums - A classic personal finance community.

Capital losses.....

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Capital losses.....

    I am looking to some of my mutual funds this week and will take a loss on them. I remember reading in a magazine that you couldn't write off a loss if you reinvested in another mutual fund in the same class within 30 days of the sell.
    Is this true?
    Any more specifics would be greatly appreciated!
    Thanks!

  • #2
    The Wash Sale rule says that if you sell a security at a loss and purchase a "substantially identical" security within 30 days, you can't claim the loss on your taxes.

    The gray zone is what constitutes "substantially identical." If I sell Pepsi stock and buy Coke stock, does that count? Probably not. If I sell my Vanguard S&P 500 Index and buy Fidelity S&P 500 Index, that probably would count.

    Most funds are different enough that I don't think it is an issue as long as you don't buy back the exact same fund.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

    Comment

    Working...
    X