Wash sale ???

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
btenny
Posts: 5649
Joined: Sun Oct 07, 2007 6:47 pm

Wash sale ???

Post by btenny »

I need to do some tax loss selling of Vanguard Muni mutual funds. I have VWIUX (intermediate muni fund) that I want to replace with MUB or VTEB for a short time. Both are muni ETFs that hold intermediate bonds. Are these subject to wash sale rules? How do I find out what is similar or different enough to be considered???
brawlrats
Posts: 343
Joined: Thu Dec 02, 2021 1:06 pm

Re: Wash sale ???

Post by brawlrats »

The relevant term is "substantially identical." Look at the indices they track. If the indices are different, you should be good to go.

VWIUX - Bloomberg 1-15 Year Municipal Bond Index
VTEB - S&P National AMT-Free Municipal Bond Index
MUB - ICE AMT-Free US National Municipal Index

Seems different to me.
livesoft
Posts: 81605
Joined: Thu Mar 01, 2007 8:00 pm

Re: Wash sale ???

Post by livesoft »

btenny wrote: Tue Nov 22, 2022 1:50 pm I need to do some tax loss selling of Vanguard Muni mutual funds. I have VWIUX (intermediate muni fund) that I want to replace with MUB or VTEB for a short time. Both are muni ETFs that hold intermediate bonds. Are these subject to wash sale rules? How do I find out what is similar or different enough to be considered???
If I had to do this, then I would search bogleheads.org for the ticker VWIUX and see what I found.
Wiki This signature message sponsored by sscritic: Learn to fish.
Topic Author
btenny
Posts: 5649
Joined: Sun Oct 07, 2007 6:47 pm

Re: Wash sale ???

Post by btenny »

Thanks for the discussion. So I did as you suggested LiveSoft and found a lot of discussion about daily versus monthly accural. This made me decide that ETFs with the monthly accural scheme were not the best for tax loss harvesting and short time trading. That six month rule is complex if you trade in 30-60 days.

So I did some more looking and found VWSUX (Vanguard Admiral short term Muni fund). This muni fund looks like a better vehicle for my tax loss purposes. BUT I am not sure it is safe from wash sale rules. Can someone point me to some details on how to figure if this fund is OK for tax harvesting?
rkhusky
Posts: 14065
Joined: Thu Aug 18, 2011 8:09 pm

Re: Wash sale ???

Post by rkhusky »

If you take a look at the examples of substantially identical in the wash sale page of the wiki, you will see that substantially identical is very close to identical. VWSUX and VWIUX are not that close. Two active funds are not going to be substantially identical unless the managers collude to make it so. There are such a wide variety of muni bonds available, it would not happen by chance. Plus the maturities and durations are quite different.
Post Reply