Culture
Recycles dryer sheets
- Joined
- Apr 15, 2007
- Messages
- 491
When I started my new business at the beginning of the year, I was forced to sell my ownership in the previous venture to my partners, as required by the ownership agreement. Fortunately, I recognized a sizable capital gain on the sale.
Unfortunately, I am now in a position to sell equities to cover up all of the capital gains from this sale with capital losses. In order to do this, I need to sell a sizable amount of one of my equity funds. Considering funds in which I have sufficient shares/losses to match my capital gains with capital losses, I have available a large cap US index, mid cap US index, small cap US index and overseas index (developed market).
I plan to sell one and transfer into the other, i.e. sell large cap and put money into mid cap, sell small cap and put into large cap, etc. I am doing this because I do not want to be out of the market for 31 days with what equities I have left. I believe at this point I am much more likely to miss a +10% day than a -10% day.
My accountant has given me an opinion in writing that large cap, mid cap, small cap and overseas index funds are sufficiently different that they will not violate the wash sale rules.
Which fund would you sell, and where would you put it? I am ok with selling one and spilling between the other two or three. In 31 days I will be putting the money back where it is now to maintain diversification.
I see no real advantage of one over the other, and will probably sell the one that is down the most (%) and split between the other three. Does anyone have an opinion one way or the other? Am I missing the obvious?
None of these funds have fees associated with redemption or purchase.
Unfortunately, I am now in a position to sell equities to cover up all of the capital gains from this sale with capital losses. In order to do this, I need to sell a sizable amount of one of my equity funds. Considering funds in which I have sufficient shares/losses to match my capital gains with capital losses, I have available a large cap US index, mid cap US index, small cap US index and overseas index (developed market).
I plan to sell one and transfer into the other, i.e. sell large cap and put money into mid cap, sell small cap and put into large cap, etc. I am doing this because I do not want to be out of the market for 31 days with what equities I have left. I believe at this point I am much more likely to miss a +10% day than a -10% day.
My accountant has given me an opinion in writing that large cap, mid cap, small cap and overseas index funds are sufficiently different that they will not violate the wash sale rules.
Which fund would you sell, and where would you put it? I am ok with selling one and spilling between the other two or three. In 31 days I will be putting the money back where it is now to maintain diversification.
I see no real advantage of one over the other, and will probably sell the one that is down the most (%) and split between the other three. Does anyone have an opinion one way or the other? Am I missing the obvious?
None of these funds have fees associated with redemption or purchase.