Wash Sale Question

[ownyourfuture]

I need dental work done late this month. Total will be approximately $2400. I'll be using my HSA account/debit card for payment.

Luckily, I looked @ the account earlier today & realized I only had $316 in cash. Early next week, I plan on selling enough Intel shares to assure there's enough cash available to cover it. The vast majority of the Intel shares were purchased in October & December of 2020 when shares were trading much higher.

Translation: All shares purchased, including those I acquired through DRIP are in the red.

I also own Intel shares in a taxable account. Have no plans of doing so, but I’m curious. If I was to purchase more shares in the taxable account the same week, would that count as a wash sale violation?

 

[audreyh1]

Since you can’t take a taxable loss from your HSA account, you would not create a wash sale situation.

You couldn’t sell at a loss in your taxable account and immediately buy same in your HSA without creating a wash sale.

 

[ownyourfuture]

Since you can’t take a taxable loss from your HSA account, you would not create a wash sale situation.

You couldn’t sell at a loss in your taxable account and buy same in your HSA without creating a wash sale.

I figured that.
Thanks for verifying

 

[copyright1997reloaded]

While I think your case is OK (sell the shares in the HSA but buy more shares in a regular account) as you aren't taking a tax loss on the HSA shares...a cautionary note to others that one can't use an IRA to avoid wash sale rules. For example:
Sell shares of INTC at a loss in your taxable account (to obtain the tax loss) AND
Buy shares of INTC in your IRA (to reestablish the position)

This kind of thing was addressed by the IRS in 2008, see IRS Revenue Letter 2008-05

 

[ownyourfuture]

Another question. This one involves selling options (covered calls)
I recently sold 2 CC's on Direxion Daily Semiconductor Bull 3x Shares ETF (SOXL)

These are held in a taxable account.
As I had hoped, the options expired worthless last Friday & resulted in a short term capital gain of $324.63

I have 200+ shares of Intel in that same account that are just under 2K in the red.

Figuring I have enough exposure to the semiconductor sector with my 1010 shares of SOXL, I decided to sell the Intel shares.

Luckily, @ the last second, I realized that could = a wash sale violation ?

Could Intel stock & a semiconductor ETF be considered ‘substantially identical’ investment ?

 

[Phroig]

Intel isn’t substantially identical to any ETF.

 

[pb4uski]

Intel isn’t substantially identical to any ETF.

+1 To be substantially identical it has to be really, really close.

 

[ownyourfuture]

Thanks for the replies.
I also posted it at the Fidelity community.

No. It is easy to argue that they are not substantially identical. Even a different ETF for semi-conductors could be different given the argument that fee is different, one is actively managed and one is passively an index fund, etc.

That makes it a trifecta.
Thanks again!