Understood, but I'll rely on the meanings of the words (below) when determining potential wash sales involving cross-account, cross-custodian, or cross account type (when an IRA or 401k is involved as the "buy" +/- 30 days).alex_686 wrote: ↑Mon Apr 02, 2018 2:04 pmSamsoes, from experience I would not recommend getting into this particular argument over semantics with a IRS agent. You will just piss them off. "Substantially" before a world is an adjective mean to a similar to a high degree, not being made out of the same identical substance. There is a fair amount of common law behind this.samsoes wrote: ↑Sun Apr 01, 2018 6:08 pm
When within the same account, I'll rely the brokerage's criteria to flag a loss in taxable as a wash sale or not.
Substantially: relating to the substance, matter, or material of a thing.
Identical: being the very same
Therefore, being the very same in substance, matter, or material. In other words, identical in substance.
(Edit: I do agree that a pair of funds or ETFs which track the same index are substantially identical, such as an S&P 500 index tracking fund from Schwab and an S&P 500 index tracking ETF from Fidelity. That's where I'll use the spirit of the regulation -- rather than the letter of it -- even though there may be minute tracking differences between the two. They are supposed to be the same thing.)