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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jun 25, 2005
- Messages
- 10,252
Re: wash sale ...
We do not have dividends in our taxable accounts automatically re-invested. Instead we take them in cash and either spend them or use them to rebalance.
As already mentioned, our short-term bond funds are held in tax-advantaged accounts, so no wash sale possible there.
However, one should not sell something like VTI at a loss in taxable and immediately buy VTI in tax-advantaged (after selling short-term bond shares to get the money for VTI) as that would prevent one from the deducting the loss on one's taxes. That's what walkingwood was writing about. One could buy something like SPY or VV instead of VTI in tax-advantaged after selling VTI for a loss in taxable.
So a wash sale is trivial to avoid if you are paying attention. I do realize that some people are not paying attention.
We do not have dividends in our taxable accounts automatically re-invested. Instead we take them in cash and either spend them or use them to rebalance.
As already mentioned, our short-term bond funds are held in tax-advantaged accounts, so no wash sale possible there.
However, one should not sell something like VTI at a loss in taxable and immediately buy VTI in tax-advantaged (after selling short-term bond shares to get the money for VTI) as that would prevent one from the deducting the loss on one's taxes. That's what walkingwood was writing about. One could buy something like SPY or VV instead of VTI in tax-advantaged after selling VTI for a loss in taxable.
So a wash sale is trivial to avoid if you are paying attention. I do realize that some people are not paying attention.