I have some muni CEFs in my taxable brokerage account that I used to stash some of my yearly withdrawal in January. Two of these went down quite a bit, along with an infrastructure fund, during the crash 2-3 weeks ago, so I did some tax loss harvesting and switched to different CEF muni funds with a higher quality profile.
On this point, however, I'm not completely clear whether these would be considered "substantially equivalent" or not; for example the new infrastructure had considerably less energy bond holdings than the one I sold, although they have similar names. I've done a little research on this, but it isn't clear to me--even if they are too similar, I at least upgraded (I think). It's more straight-forward in index funds, which obviously would not qualify for tax loss harvesting, but these are actively managed closed-end funds that have a different mixture of holdings. Again, I'm not sure.
I also did some other up-grading in funds that didn't have losses; if the swap above truly generates capital gains losses, then I can offset the taxes generated here. If not, c'est la vie.
Just an idea. YMMV.
Originally Posted by Austin704
In my taxable account I have a fairly substantial position in USAA intermediate tax-exempt muni fund (USATX). I’ve read about the pressures on bonds from Covid, and one area starting to get attention is state and municipal bonds.