Washsale and reinvest

[retire to nature]

Hi

I sold a house in the last year and put 200k to vtiax in the last dec and Jan. I miscalculated my loss as the same amount of the house but actually my total loss from stock is 300k So pretty much all the money from the house gone

I was proud of not selling my VTIAX fund in this big deep, but think about to sell for the tax benefit to write off some capital gain from selling rental property.


I need to sell some rental property now, so I thought it is better to sell the last buy stocks which will be short term loss. Initially thinking just 200k, but now writing wondering more selling which bought in 2021. I know it is very risky.

Mainly I would have spy fund back and all the money would go to spy for now. I know the wash sale rules 61 days. So even though I have some cash now or other cash from the house sales, I cant buy spy now and have to wait 30+ days, right??

as long as it pass the days would it be fine?

so 20% down spy means 40k from 200k, which i can write off capital gain from the houses.

Should I go ahead to sell? or better not to? What would you do if you were me?

 

[DrRoy]

You could buy another S&P 500 tracking ETF anytime.

 

[mrfeh]

Hi

I sold a house in the last year and put 200k to vtiax in the last dec and Jan. I miscalculated my loss as the same amount of the house but actually my total loss from stock is 300k So pretty much all the money from the house gone

I was proud of not selling my VTIAX fund in this big deep, but think about to sell for the tax benefit to write off some capital gain from selling rental property.


I need to sell some rental property now, so I thought it is better to sell the last buy stocks which will be short term loss. Initially thinking just 200k, but now writing wondering more selling which bought in 2021. I know it is very risky.

Mainly I would have spy fund back and all the money would go to spy for now. I know the wash sale rules 61 days. So even though I have some cash now or other cash from the house sales, I cant buy spy now and have to wait 30+ days, right??

as long as it pass the days would it be fine?

so 20% down spy means 40k from 200k, which i can write off capital gain from the houses.

Should I go ahead to sell? or better not to? What would you do if you were me?

Review the rules for tax loss harvesting. You can replace your VTIAX with something similar (but not identical) immediately to realize the capital losses without getting out of the market.

 

[retire to nature]

You could buy another S&P 500 tracking ETF anytime.

I couldnt understand your answer and realized I mistyped VFIAX. I bought VFIAX not VTIAX

 

[retire to nature]

Review the rules for tax loss harvesting. You can replace your VTIAX with something similar (but not identical) immediately to realize the capital losses without getting out of the market.

So from VFIAX to what can be? I thought similar spy stock cant. IRS says no substantially identical stock in 30 days. I was clear to keep S&P fund, thats why I was asking if i need to wait for 30days. Am I wrong?

 

[mrfeh]

So from VFIAX to what can be? I thought similar spy stock cant. IRS says no substantially identical stock in 30 days. I was clear to keep S&P fund, thats why I was asking if i need to wait for 30days. Am I wrong?

Your original post is confusing, so I'm still not sure what you're asking.

If you bought VFIAX more than 30 days ago, you can sell it for tax loss harvesting purposes. You could replace it with something similar but not identical, like VTSAX or VTI.