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I recently sold some COLTX - Columbia Tax Exempt Fund for a loss, and bought some FSTFX - FIDELITY LIMITED TERM MUNI INCOME . It seems a bit late to ask , but hopefully this would not be considered a wash sale as far at Tax Lost Harvesting (TLH) is concerned. It seems like COLTX is a long term muni, and FSTFX a short term muni, so they are different. Just want to get some opinions on this, thanks.
If you're running short on things to worry about , here's something:NewlyMinted wrote:I recently sold some COLTX - Columbia Tax Exempt Fund for a loss
If any of your shares of COLTX sold at a loss were held for 6 months or less, then the loss you can claim might be reduced.
It depends on how the fund manages and accrues dividends: if it declares them daily and distributes them monthly (or more often), then this rule doesn't apply. Most Vanguard Muni Funds do this, but VTEAX (Tax Exempt Bond Index) does not. I have no idea about COLTX. Check your prospectus.
If COLTX is like VTEAX, and the shares you sold produced $100 of tax-exempt interest, then the loss you can claim is reduced by $100.
There is NO way to do that, because other than exact security or qualifying option, there is no guidance from the IRS as to what constitutes "substantially identical". Fairmark articles are not issued by the IRS and have no authority.goingup wrote:When TLHing just make sure your TLH partner is not "substantially identical".
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