Using Wash Sale Rule to avoid Capital Gains

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blood_donor
Posts: 119
Joined: Sun May 27, 2007 9:36 pm
Location: Metro Detroit, MI

Using Wash Sale Rule to avoid Capital Gains

Post by blood_donor » Tue Dec 30, 2014 1:53 pm

I own some VNQ (REIT ETF) in a Fidelity brokerage account. I have about 30% long term cap gains saved up on this one.
Since it is a competitor, Fidelity happily charges me $8/trade on this ETF.
Suppose I were to sell it, and right away buy a "no transaction fee" REIT ETF that Fidelity offers, such as IYR (iShares REIT ETF).
Could I claim a wash sale, "Substantially Identical" to the IRS and avoid paying taxes on the apparent long term cap gains?

Has anyone here tried such a thing?

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cheese_breath
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Joined: Wed Sep 14, 2011 7:08 pm

Re: Using Wash Sale Rule to avoid Capital Gains

Post by cheese_breath » Tue Dec 30, 2014 1:56 pm

Wash sales prevent you from claiming losses, not gains.
The surest way to know the future is when it becomes the past.

jebmke
Posts: 9837
Joined: Thu Apr 05, 2007 2:44 pm

Re: Using Wash Sale Rule to avoid Capital Gains

Post by jebmke » Tue Dec 30, 2014 2:09 pm

c_b is correct. Wash sale rule only applies to losses.
When you discover that you are riding a dead horse, the best strategy is to dismount.

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