Reverse type of Wash Sale ?


A

Another Poster

I'm roughly familiar with the purpose of wash rules ...

Is there a "reverse" wash rule also? I have some money in an S&P 500
fund with long term gains. I'd like to move it to an almost identical
S&P 500 fund that has a better cost structure and more flexible rules
(no commissions). The funds are otherwise almost identical.

Is there some way to make the move without triggering tax on the long
term gains when I sell the existing fund?

Thanks,
 
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T

Tom Healy CPA

I'm roughly familiar with the purpose of wash rules ...

Is there a "reverse" wash rule also? I have some money in an S&P 500
fund with long term gains. I'd like to move it to an almost identical
S&P 500 fund that has a better cost structure and more flexible rules
(no commissions). The funds are otherwise almost identical.

Is there some way to make the move without triggering tax on the long
term gains when I sell the existing fund?

Thanks,
Unfortunately, no. Just be glad you don't have capital losses carried
over from earlier years. And this year is a good one to do the sale,
since it's before the capital gains rate increases to 20%, if Congress
does nothing.
 
R

removeps-groups

Unfortunately, no. Just be glad you don't have capital losses carried
over from earlier years. And this year is a good one to do the sale,
since it's before the capital gains rate increases to 20%, if Congress
does nothing.
Is a 1031 exchange possible? Is it true that some ETF's do swaps, and
is a swap a 1031 exchange?
 
M

Mark Bole

Is a 1031 exchange possible? Is it true that some ETF's do swaps, and
is a swap a 1031 exchange?
Stocks and other financial securities are ineligible for non-taxable
exchanges, just like inventory, partnership interests, etc. (stock
exchanged for stock in the same corporation can be non-taxable).

A 1031 exchange involves an additional element of deferral, where the
exchange of property is not simultaneous. But it still has to be a
non-taxable exchange in the first place.

-Mark Bole
 
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A

Another Poster

Unfortunately, no. Just be glad you don't have capital losses carried
over from earlier years. And this year is a good one to do the sale,
since it's before the capital gains rate increases to 20%, if Congress
does nothing.
Ugh. Thanks... the "do it this year" advice is appreciated.
 

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