Wash Sale on Mutual Fund

nick684 · #1 Oct 14, 2007, 04:21 PM

I have shares in VTI and I'm thinking about selling all my shares, take a loss and turn around the same day and buying the mutual fund, Total Stock Market International Index Fund. Would the IRS consider those two funds substantially identical? Would it be considered a wash sale?

Thanks,
Nick

KeepItSimpleStupid · Oct 14, 2007, 05:51 PM

It's not a wash sale because it's not the same fund. You take a loss on the sale VTI and use those monies to buy TSMIIF and then start over.

The IRS doesn't allow selling and buying back and keeping your old cost basis as much as I'd like to do so. If I could, then the mutual fund company will track my average cost basis for me.



At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to: Get free answers from experts in any of our 300+ topics. Accept money for answers that you provide. Communicate privately with other members (PM). See fewer ads. Sign Up!