Hopeful
Recycles dryer sheets
- Joined
- Aug 6, 2013
- Messages
- 212
So I have many of the same index funds (such as Vanguard Total Stock Market) held in both taxable accounts and tax deferred retirement accounts. I was out of curiosity looking into was sale rules. To the best of the information I could find on the internet said that wash sale rules would apply across tax deferred and taxable accounts. Meaning I could claim a loss in a taxable account, then buy the stock within an IRA right away within 30 days.
This got me thinking about cost basis across taxable and tax deferred accounts. I never really paid much attention to the like stock/fund in and IRA when selling a fund in a taxable account when figuring basis. If using average cost method, does the IRS expect you to also factor in the average cost of the tax deferred shared too? My gut tells me no, but the wash sale rule kind of surprised me.
This got me thinking about cost basis across taxable and tax deferred accounts. I never really paid much attention to the like stock/fund in and IRA when selling a fund in a taxable account when figuring basis. If using average cost method, does the IRS expect you to also factor in the average cost of the tax deferred shared too? My gut tells me no, but the wash sale rule kind of surprised me.