wash sale

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texan100%
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Joined: Fri Dec 20, 2019 10:23 pm

wash sale

Post by texan100% »

Hello to everybody. This is my first massage. I am curios about wash sale.If I sell part of my fund(not whole fund) in taxable account and buy same fund in IRA, it will be count wash sale? Or I need wait for 30 days? Thanks in advance.
rkhusky
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Re: wash sale

Post by rkhusky »

texan100% wrote: Fri Dec 20, 2019 10:38 pm Hello to everybody. This is my first massage. I am curios about wash sale.If I sell part of my fund(not whole fund) in taxable account and buy same fund in IRA, it will be count wash sale? Or I need wait for 30 days? Thanks in advance.
Only if you sell for a loss. If you buy the same fund after 30 days, no wash sale. If you buy a different, but similar fund, then no wash sale.
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Dale_G
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Re: wash sale

Post by Dale_G »

Do you have a gain on the shares you are selling in the taxable account? If so there is no wash sale. If you will have a loss on the shares sold in the taxable account, then there will be a wash sale if you buy a substantially identical fund in the IRA.

You don't have to fund an IRA for 2019 until April 15, 2020, but if you want to do it now and need to sell a fund at a loss in taxable, just buy something similar in the IRA - or wait out the 30 days.

I can't find any funds in my accounts that have a loss :sharebeer

Dale
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1130Super
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Re: wash sale

Post by 1130Super »

Just curious how does IRS track wash sales across multiple accounts? Not trying to cheat the system just curious.
increment
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Re: wash sale

Post by increment »

1130Super wrote: Sat Dec 21, 2019 7:40 am Just curious how does IRS track wash sales across multiple accounts? Not trying to cheat the system just curious.
Typically, they don't. That is your legal responsibility. You will need to justify what you did (or did not do) if audited.
livesoft
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Re: wash sale

Post by livesoft »

1130Super wrote: Sat Dec 21, 2019 7:40 am Just curious how does IRS track wash sales across multiple accounts? Not trying to cheat the system just curious.
I think it might only be discovered in a deep audit.
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Topic Author
texan100%
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Joined: Fri Dec 20, 2019 10:23 pm

Re: wash sale

Post by texan100% »

Good Afternoons. Thanks for answers. I do not have any loss. I only to try reduce some funds in my taxable account to transform to IRA. I am already cancel dividends and capital gain distribution for this funds. But I am not sure about canceling capital gain distribution.Any advise how better reduce taxable funds ?
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Dale_G
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Re: wash sale

Post by Dale_G »

It is also fine to not reinvest any capital gains in the taxable account. Since you do not have losses in the taxable fund you want to sell, there will not be a wash sale if you purchase the same fund in your IRA.

But since you have a profit (gain) in the taxable fund, you may have to pay tax on the gain when you sell and move the money to your IRA.

Dale
Volatility is my friend
Topic Author
texan100%
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Joined: Fri Dec 20, 2019 10:23 pm

Re: wash sale

Post by texan100% »

hi,folks.I understand if I sell in gain it will be no wash sale? And I can sell fund in my IRA and to buy same fund in taxable account in same day?
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puc_ytpme
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Re: wash sale

Post by puc_ytpme »

texan100% wrote: Mon Feb 17, 2020 9:00 pm hi,folks.I understand if I sell in gain it will be no wash sale? And I can sell fund in my IRA and to buy same fund in taxable account in same day?
What do you believe the answer to be to both questions?

The way you asked, tells me you are understanding your situation correctly.

Good luck
No person ever steps in the same river twice, for it’s not the same river & they’re not the same person
rkhusky
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Re: wash sale

Post by rkhusky »

texan100% wrote: Mon Feb 17, 2020 9:00 pm hi,folks.I understand if I sell in gain it will be no wash sale? And I can sell fund in my IRA and to buy same fund in taxable account in same day?
Buying in taxable doesn't invoke wash sales. Selling in an IRS doesn't invoke wash sales.

Selling in taxable for a gain doesn't invoke a wash sale, but that is on a share by share basis. It's possible to have an overall gain, but still cause wash sales on some shares. In addition to selling for a loss, you would have to buy substantially identical replacement shares within plus/minus 30 days.
Topic Author
texan100%
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Re: wash sale

Post by texan100% »

Thanks.
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