The Cosmic Avenger
Thinks s/he gets paid by the post
I generally try to keep a two-fund portfolio, but the few stocks I've bought I try to buy and hold, so I never really even heard or had to think about the wash sale rule. I only know about it from reading this forum, really.
Quick background: I decided to dabble in stocks where I knew the company and industry back in 2009, when I had a small inherited IRA that I could consider "fun money" instead of part of my retirement savings. I bought Google and Apple, and have held them ever since. After reading this board more regularly, I've realized that I should hold these stocks in a taxable account, as when I eventually sell, the LTCG tax would be more favorable than income tax on the entire amount.
Since we're going through a huge bear market, I'm thinking about selling those stocks soon, and buying a bond fund in the inherited IRA. Then I'll sell some bonds in a taxable account* I have, and buy that same stock in the taxable account. (*Taxable account is an inherited non-retirement account; I just kept the positions my father had out of inertia, and a bit of nostalgia, something I've come to realize was a mistake. I should have sold everything on the stepped-up basis and bought into the two funds in the two-fund portfolio I have elsewhere.)
So, the wash sale rules apply across accounts, right? Selling at a loss in one account and buying from another would be too easy a way to circumvent IRS rules, I would think. What if I care more about transferring the shares and don't want to declare a loss? That might seem stupid, but would there be any problem with a "wash sale" if I don't declare the loss? Or should I try to wait 30 days and repurchase? I'm a bit concerned that we could see a recovery start by then, although I wouldn't put good odds on it, it would still be a big risk that tech stocks could shoot back up.
Quick background: I decided to dabble in stocks where I knew the company and industry back in 2009, when I had a small inherited IRA that I could consider "fun money" instead of part of my retirement savings. I bought Google and Apple, and have held them ever since. After reading this board more regularly, I've realized that I should hold these stocks in a taxable account, as when I eventually sell, the LTCG tax would be more favorable than income tax on the entire amount.
Since we're going through a huge bear market, I'm thinking about selling those stocks soon, and buying a bond fund in the inherited IRA. Then I'll sell some bonds in a taxable account* I have, and buy that same stock in the taxable account. (*Taxable account is an inherited non-retirement account; I just kept the positions my father had out of inertia, and a bit of nostalgia, something I've come to realize was a mistake. I should have sold everything on the stepped-up basis and bought into the two funds in the two-fund portfolio I have elsewhere.)
So, the wash sale rules apply across accounts, right? Selling at a loss in one account and buying from another would be too easy a way to circumvent IRS rules, I would think. What if I care more about transferring the shares and don't want to declare a loss? That might seem stupid, but would there be any problem with a "wash sale" if I don't declare the loss? Or should I try to wait 30 days and repurchase? I'm a bit concerned that we could see a recovery start by then, although I wouldn't put good odds on it, it would still be a big risk that tech stocks could shoot back up.